Name:____________________________

Date: ______________

University of Belize
MATH 3025 Business Statistics Sect. _____
Test I

Time Allowed: 70 minutes

Do all problems and show work in PEN! Good Luck!

1. Roper ASW conducted a survey to learn about American adults attitudes toward money and
happiness (Money, October 2003). Forty-six percent of the respondents said they balance their
checkbook at least once a month.

a. [6 points] Suppose a sample of 280 American adults were taken. Show the sampling
distribution of the proportion of adults who balance their checkbook at least once a
month.

Ans: ___________________________

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 b. [15 points] What is the probability that the sample proportion will be within .02 of the
population proportion?

Ans: ___________________________

c. [15 points] What is the probability that the sample proportion will be within .04 of the
population proportion?

Ans: ___________________________

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 2. [30 points] In an effort to estimate the mean amount spent per customer for dinner at a major
Atlanta restaurant, data were collected for a sample of 31 customers. Assume a population
standard deviation of $8.
a. At 99% confidence, what is the margin of error?

Ans: ___________________________

b. If the sample mean is $24.80, what is the 99% confidence interval for the population
mean?

Ans: ___________________________

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 3. The Belize Sugar Company reports that the average Belizean consumes 60 pounds of sugar
annually. Suppose a sample of 64 Belizeans revealed an annual sugar consumption mean of 69
pounds and a sample standard deviation of 5 pounds.
a. [17 points] Use the sample information to develop a 95% confidence interval estimate of
the mean annual amount of sugar consumed by the average Belizean.

Ans: ___________________________

b. [17 points] Based on the confidence interval from part (a), does it appear that the mean
annual consumption differs from that reported by the Belize Sugar Industry? Explain.

Ans: _____________________________________________________________________________
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