Seco, Marc Solar, Richmond Romulus MATH 103 PROBLEM SET #4

ESTIMATION 1.) An electrical firm manufactures light bulbs that have a length of life that is normally distributed, with a standard deviation of 40 hours. If the random sample of 40 bulbs has a mean life of 780 hours, find a 99% confidence interval for the population mean of all bulbs produced by this firm. Solutions: x 2.58 s/n 780 + 2.58 40/40 = 796.32 780 2.58 40/40 = 763.68 763.68 < < 796.32 2.) A study was conducted on the ages of graduate students enrolling in MBA in Top 20 schools and second-tier schools. The following samples were selected at random. a.) What is the best point estimate of the difference in mean age of the two groups? Mean A: Top 20 schools: 30 + 27 + 28 + 31 + 25 + 28 + 29 + 29 + 30 + 26 + 27 + 28 + 28 + 29 + 30 + 33 + 35 + 28 + 29 + 30 + 28 + 29 + 27 + 28 + 29 + 31 + 30 + 29 + 29 + 30 + 32 + 30 + 26 + 27 + 27 + 28 + 28 + 29 + 30 + 29 / 40 = 1156 / 40 = 28.9 Mean B: Second-tier schools: 23 + 29 + 25 + 41 + 43 + 24 + 35 + 37 + 29 + 24 + 26 + 27 + 33 + 37 + 45 + 24 + 25 + 25 + 24 + 38 + 25 + 25 + 47 + 52 + 39 + 55 + 39 + 38 + 35 + 25 + 36 + 35 + 27 + 28 + 39 + 30 + 31 + 32 + 28 + 25 / 40 = 1305/40 = 32.63 Point Estimate: 28.9 - 32.63 = -3.73

b.) Construct a 95% confidence interval for the mean age of the two groups. Compare the difference of the mean age of the two groups. Standard Deviation A: 1.89 Standard Deviation B: 8.23 Confidence Interval: -3.73 + 1.96
1.89 2 40
1.89 2 40

8.23 2 40
8.23 2 40

= -1.11

-3.73 - 1.96

= -6.35

6.35 1 2 1.11

3.) A survey asked employees ages 18 to 29 if they would prefer better health insurance or a raise in salary (USA Today, 2000). Answer the following questions assuming 340 of 500 employees would prefer better health insurance over a raise. a. What is the point estimate of the proportion of employees ages 18 to 29 who would prefer better health insurance? b. What is the 95% confidence interval estimate of the population proportion? Solutions:
350 .68 (. 32 ) 1.96 = 0.72 500 500

350 .68 (. 32 ) 1.96 = 0.64 500 500

.64 p .72

4.) Suppose a researcher wants to compare the proportions of students who prefer the new learning pedagogy in learning statistics for two consecutive semesters (initial semester and the following semester of implementation). Sample 1 is obtained from the responses of the students who were enrolled in a subject under the new learning paradigm during its first semester of implementation while an independent sample 2 is obtained from the responses of the students taking the course under the new learning pedagogy following semester of its implementation. Sample 1: Y = 28; N = 72 Sample 2: Y = 43; N = 57 a. Find a point estimate for the true difference of proportions of students preferring the new pedagogy in learning statistics for two consecutive semesters. Point Estimate: 28/100= 0.28 43/100 = 0.43 28/100 - 43/100 = -0.15

b. Construct a 90% confidence interval for the true difference of proportions of students preferring the new pedagogy in learning statistics for two consecutive semesters.
- 0.15 + 1.65 .28 (. 72 ) .43(. 57 ) = -0.04 100 100

- 0.15 - 1.65

.28 (. 72 ) .43(. 57 ) = -0.26 100 100

.26 p1 p2 .04

c. Based on the 90% confidence interval that you constructed in (b), is there a significant increase in the proportion of students preferring the new learning framework for two consecutive semesters? - There is an increase in the proportion of students preferring the new learning framework for two consecutive semesters.

HYPOTHESIS TESTING 1.) The MBA student then obtained two samples of 40 men and 32 women from the MBA graduates and compared their earnings (in thousands of dollars).

Do the two groups differ significantly in their mean earnings? Justify your answer. Use 2% level of significance. = 0.02

x1 x2 0
2 s12 s 2 n1 n2

39.3 38.1 9.0 2 4.32 40 32

= 0.76

p-value = 1 - .7764 = 2(2236) = 0.4472 There is no sufficient evidence that the two groups differ in their earnings.

2.) Fifty students were selected at random and a mean weight of 48.7 kilos and standard deviation of 5.87 were calculated. A journal claims that the true mean weight is 46.3 kilos. Is there sufficient evidence that the true mean is higher than claimed by the said journal? Use 5% level of significance = 0.05 Ho: = 46.3 Ha: > 46.3 Rejection Region: one-tailed Test Statistic: x 0 48 .7 46 .3 z 2.89 s/ n 5.87 / 50 Decision: Reject Ho Conclusion: There is sufficient evidence that is greater than 46.3.