CH 06 Test

Chapter 6 Confidence Intervals
True/False Questions
1. The confidence coefficient for a 95% confidence interval is z = 1.645.
Answer: False Type: Computation Difficulty: Easy
2. The confidence coefficient for an 80% confidence interval is z = 1.28.
Answer: True Type: Computation Difficulty: Easy
3. In general, when the sample size stays the same, the higher the level of confidence, the
narrower the confidence interval.
Answer: False Type: Concept Difficulty: Medium
4. One way to get a narrower confidence interval, is to increase the sample size.
Answer: True Type: Concept Difficulty: Medium
5. When s is unknown, the chi-square distribution is used to construct confidence

intervals on the population mean.
6. When using the t-distribution to construct a confidence interval on the population

mean, the degrees of freedom are n - 1.
Answer: True Type: Concept Difficulty: Easy
7. The variance of a chi-square distribution is equal to the degrees of freedom.
8. As the level of confidence increases, the width of the confidence interval increases.
9. The closer it is necessary for the sample estimate to be to the unknown population
parameter, the smaller the sample size required.
Answer: False Type: Concept Difficulty: Easy
Aczel, Complete Business Statistics, Sixth Edition 1

10. Confidence intervals depend on the standard deviation of the distribution.
11. As the standard deviation of a distribution increases the confidence interval will
decrease.
Answer: False Type: Concept Difficulty: Easy
Multiple Choice Questions
12. A study was conducted to evaluate the stress level of senior business students at a
particular college. Forty students were selected at random from the senior business
class, and their stress level was monitored by attaching an electrode to the frontalis
muscle (forehead). For the forty students, the mean EMG (electromyogram) activity
was found to be 35.8 microvolts. In addition, the standard deviation of the EMG
readings was found to be 2.5 microvolt. What would be the 99% confidence interval
on the true mean EMG activity for all seniors in the class?
A) [34.2796, 36.8704]
B) [34.7296, 36.7804]
C) [34.9672, 36.7840]
D) [34.7456, 36.0566]
E) [34.9834, 36.5095]
Answer: A Type: Computation Difficulty: Medium
13. For n = 121, sample mean = 96, and a known population standard deviation s = 14,
construct a 95% confidence interval for the population mean.
A) [93.53, 98.48]
B) [93.51, 98.49]
C) [93.02, 98.98]
D) [93.06, 98.94]
E) [93.00, 98.95]
Answer: B Type: Computation Difficulty: Medium
2 Aczel, Complete Business Statistics, Sixth Edition

14. A survey of 49 people revealed that the mean number of minutes a person talks on his
or her wireless phone in one day in a particular locality is 26, with a standard deviation
of 2.3. Give a 99% confidence interval for the average daily usage.
A) [25.08, 26.92]
B) [25.14, 26.86]
C) [25.12, 26.88]
D) [25.17, 26.83]
E) [25.92, 26.92]
Answer: C Type: Computation Difficulty: Medium
15. The mean of the sampling distribution of the sample mean is:
A) equal to the mean of the population.
B) an approximation of the mean of the population.
C) not a good estimate of the population mean.
D) equal to the population mean divided by n.
E) none of the above.
Answer: A Type: Concept Difficulty: Easy
16. For n = 25, sample mean = 645, and s = 55, construct a 99% confidence interval for
the population mean.
A) [614.23, 675.77]
B) [617.59, 672.41]
C) [617.67, 672.34]
D) [613.43, 676.66]
E) [616.68, 673.33]
17. Out of a sample of 49 randomly selected stocks, it is found that 44 of them follow the
rise and fall of the S&P 500 Index during the week. Give a 95% confidence interval
for the proportion of all stocks that follow the S&P Index that week.
A) [0.8620, 0.9339]
B) [0.8531, 0.9429]
C) [0.3047,0.4913]
D) [0.8943, 0.9016]
E) [0.8132, 0.9827]
Answer: E Type: Computation Difficulty: Medium

18. A 99% confidence interval can be interpreted as:

A) In 99% of the samples, the mean of the samples will be outside the interval.
B) There is a 1% chance that the true parameter value is outside the interval.
C) 99% of all population values are within the interval.
D) Both a and b.
E) None of the above.
19. A manufacturer of TV sets wants to find the average selling price of a particular
model. A random sample of 25 different stores gives the mean sale price as $341 with
a standard deviation of $16. Give a 90% confidence interval for the mean selling price
of the TV model.
A) [336.23, 345.77]
B) [337.31, 344.69]
C) [337.32, 344.68]
D) [346.48, 335.52]
E) [336.39, 345.61]
Answer: D Type: Computation Difficulty: Medium
20. The mean amount of money in the money market accounts of 36 customers is found to
be $18,240, with a standard deviation of $1,100. Construct of 99% confidence interval
for the mean amount of money in the money market accounts at this bank.
A) [17813, 18667]
B) [17793, 18687]
C) [17768, 18712]
D) [17741, 18739]
E) [17151, 19351]
21. The mean time for a direct flight from New York to Boston over a random sample of
25 flights, is found to be 55 minutes with a standard deviation of 10 minutes.
Construct a 99% confidence interval for the mean flying time.
A) [50.37, 59.64]
B) [50.53, 59.47]
C) [50.51, 59.49]
D) [49.41, 60.59]
E) [49.99, 60.01]

22. A paper manufacturer samples 100 sheets of paper with a variance in thickness of
0.0025 inches squared. Construct a 95% confidence interval for the population
variance.
A) [0.001990, 0.003176]
B) [0.001910, 0.0033351
C) [0.001927, 0.003374]
D) [0.002011, 0.003208]
E) [0.002010, 0.002990]
23. When the sample size increases, everything else remaining the same, the width of a
confidence interval for a population parameter will:
A) increase
B) decrease
C) remain unchanged
D) sometimes increase and sometimes decrease
E) impossible to tell
Answer: B Type: Concept Difficulty: Medium
24. A person measures the contents of 36 pop cans and finds the mean content to be 12.1
fluid ounces with a standard deviation of 0.2 ounces. Construct a 99% confidence
interval for the average fluid content of a can.
A) [12.014, 12.186]
B) [12.019, 12.181]
C) [12.009, 12.191]
D) [12.022, 12.178]
E) [12.035, 12.165]
25. A telephone company wants to estimate the mean number of minutes people in a city
spend talking long distance with 95% confidence. From past records, an estimate of
the standard deviation is 12 minutes. What is the minimum sample size required if the
desired width of the confidence interval is 10 minutes?
A) 28
B) 11
C) 23
D) 19
E) 42


26. A tire manufacturer tests 144 tires and finds their mean life to be 40,200 miles, with a
standard deviation of 1250 miles. Find a 99% lower bound for the average life of these
tires.
A) 40,178
B) 39,958
C) 39,931
D) 39,953
E) 39,927
27. A lumber company transports its logs by floating them over a river. It wants to find the
mean time for a log to travel down to the factory. Measuring the time for 25 logs, it
finds the mean time to be 65 minutes, with a standard deviation of 8 minutes.
Construct a 95% confidence interval for the mean travel time.
A) [61.704, 68.296]
B) [61.698, 68.302]
C) [62.262, 67.738]
D) [62.267, 67.733]
E) [61.864, 68.136]
28. In a department store, it is found that out of a randomly selected 64 customers, 21 buy
cards. Construct a 95% confidence interval for the proportion of customers buying
cards.
A) [0.3177, 0.3445]
B) [0.2316, 0.42471
C) [0.3214, 0.3349]
D) [0.2484, 0.5922]
E) [0.2131, 0.4432]

29. A credit card company wants to estimate the average balance of its customers. A
random sample of 144 customers shows that the mean credit is $135, with a standard
deviation of $43. Construct a 95% confidence interval for the mean balance.
A) [127.98, 142.02]
B) [129.11, 140.89]
C) [129.06, 140.94]
D) [125.62, 144.38]
E) [128.25, 141.75]
30. From a random sample of 121 government employees it is found that 65 of them are
males. Construct a 99% confidence interval for the proportion of males in government
service.
A) [0.4186, 0.6558]
B) [0.4202, 0.6541]
C) [0.5318, 0.5426]
D) [0.5265, 0.5480]
E) [0.1030, 0.6774]
31. A TV manufacturer studies the records of the last 45 days and finds that a mean of 5.7
defective sets are produced every day, with a standard deviation of 1.4. Construct a
95% confidence interval for the mean defective sets produced every day.
A) [5.3567, 6.0433]
B) [5.3492, 6.0508]
C) [4.3700, 7.1700]
D) [5.2909, 6.1091]
E) [5.2795, 6.1205]

32. A car rental company finds that approximately 5% of the cars rented are returned
damaged. It is found that over the last week, out of the 256 cars rented, 13 were found
to be damaged. Construct a 95% confidence interval for the proportion of returned
cars that are damaged.
A) [0.02395, 0.07755]
B) [0.04583, 0.5599]
C) [0.04370, 0.14526]
D) [0.02389, 0.07768]
E) [0.05041, 0.05115]
33. The mean bill of 16 randomly selected customers in a restaurant is found to be $32,
with a standard deviation of $3.50. Construct a 99% confidence interval for the mean
bill of a customer.
A) [31.355, 32.645]
B) [29.747, 34.253]
C) [29.421, 34.579]
D) [29,740, 34.260]
E) [28.570, 35.570]
34. A random sample of 100 patients, suffering from a particular disease is given a new
medicine. Eighty-five of the patients report an improvement in their condition. What is
the success rate of the medicine, with a 99% confidence level?
A) [0.7669, 0.9331]
B) [0.8331, 0.8671]
C) [0.7579, 0.9421]
D) [0.7422, 0.9578]
E) [0.7560, 0.9440]
35. If the population standard deviation is not known, what should be used as a point
estimate?
A) The standard deviation of a few sample means.
B) The sample mean.
C) The sample standard deviation.
D) Any of the above.
E) None of the above.
Answer: C Type: Concept Difficulty: Easy


36. When is the t-distribution used in the construction of confidence intervals?

A) When the population standard deviation is not known and the sample is small.
B) When the population standard deviation is known.
C) Either the normal or t-distribution may be used.
D) Always.
E) For finite populations and large samples.
Answer: A Type: Concept Difficulty: Easy
37. If the sample size is increased and the confidence level is changed from 90% to 99%,
which of the following will be true?
A) The confidence interval gets narrower.
B) The confidence interval stays the same.
C) The confidence interval gets wider.
D) It is impossible to tell.
E) The standard error changes.
Answer: D Type: Concept Difficulty: Medium
38. How much larger should the sample be if we want the confidence interval to be one
tenth as wide as it is currently?
A) 100 times
B) 10 times
C) 50 times
D) 1000 times
E) not enough information to determine
39. A 95% confidence interval for the population mean is [106, 116]. The width of a 99%
confidence interval for the mean, based on this information, would be:
A) 13.1
B) 22.5
C) 10
D) 5
E) Impossible to determine
Answer: E Type: Concept Difficulty: Medium

40. If the sample size is cut to 1/4 of its present size, all else being the same, the
confidence interval will become:
A) twice as wide
B) half as wide
C) four times as wide
D) will not change
E) not enough information to determine
Answer: A Type: Concept Difficulty: Medium
41. The sample mean is 12; the sample standard deviation is 5; and the sample size used is
25. A 95% confidence interval for the population mean is:
A) [2.2, 21.8]
B) [10.04, 13.96]
C) [9.936, 14.064]
D) [9.940, 14.060]
E) [10.289, 13.711]
42. The width of a 95 % confidence interval for the population mean is 10 units. The
sample size is large (over 100). What would be the width of a 90% confidence interval
for the population mean, everything else (sample size, sample variance) remaining the
same?
A) 8.3928571
B) 11.914894
C) 13.142857
D) 5.5563428
E) none of the above
Answer: A Type: Computation Difficulty: Hard
43. Suppose that in sampling for the population proportion, it is found that 20 out of 100
items are defective. Construct a 95% confidence interval for the proportion of
defective items in the population.
A) [0.1216, 0.2784]
B) [0.0234, 0.3452]
C) [0.1212, 0.3341]
D) [0.175, 0.225]

44. If we want to construct a confidence interval half as wide as the current one, then the
sample needs to be:
A) twice as large
B) half as large
C) four times as large
D) eight times as large
E) one-fourth as large
Answer: C Type: Concept Difficulty: Medium
45. If the sample size is 16, the sample mean is 30, and the sample standard deviation is 4,
construct a 95% confidence interval for the population mean.
A) [27.869, 32.131]
B) [27.880, 32.120]
C) [28.040, 31.960]
D) [28.355, 31.645]
46. When sampling from a normal population, the sample mean is 25, the sample standard
deviation is 10, and the sample size is 100. A 99% confidence interval for the
population mean is:
A) [23.04, 26.96]
B) [22.42, 27.58]
C) [23.355, 26.645]
D) [21.14, 30.62]
47. The management of a local restaurant wants to estimate the average amount their
customers spend at the restaurant to within $0.50, with a 95% confidence. What is the
minimum sample size required, if the standard deviation is assumed to be $3.50?
A) 272
B) 189
C) 325
D) 196

48. On studying the occupancy of a few randomly selected flights from New York, it is
found that 49 out of the 196 passengers were less than 18 years old. Construct a 90%
confidence interval for the proportion of passengers who are less than 18 years of age
on these flights.
A) [0.1894, 0.3106]
B) [0.1993, 0.3007]
C) [0.19125, 0.30875]
D) [0.6991, 0.8009]
49. The sample mean is 115, the sample size is 16, and the sample standard deviation is 4.
Construct a 99% confidence interval for the population mean.
A) [113.04, 116.96]
B) [112.425, 117.575]
C) [112.053, 117.947]
D) [112.869, 117.131]
50. A credit card company wants to estimate the average balance of its customers to
within $15 of the true value, with a 95% confidence. Find the minimum required
sample size, if the standard deviation is $43.
A) 23
B) 474
C) 34
D) 55
51. The average bill in a restaurant for 49 customers is found to be $30.90, with a standard
deviation of $3.20. Construct a 99% confidence interval for the average bill.
A) 30.90 (2.575)(3.20/7)
B) 30.90 (2.575)(3.20)
C) 30.90 (1.96)(3.20/7)
D) 30.90 (2.575)(3.20/49)

52. How much larger should the sample size be, if we want the confidence interval to be
one-fourth as large as it is currently?
A) twice as large
B) eight times as large
C) four times as large
D) sixteen times as large
Answer: D Type: Concept Difficulty: Medium
53. If the sample size goes up, and at the same time the confidence level goes down from
99% to 90% then, all else being equal, my new confidence interval will be:
A) wider
B) narrower
C) can't tell
Answer: B Type: Concept Difficulty: Medium
54. I use a random sample of 18 and get a sample mean of 78 and sample standard
deviation of 10. My 95% confidence interval for the population mean is:
A) [73.03, 82.97]
B) [73.38, 82.62]
C) [77.16, 82.91]
D) [-2.11, 2.11]
E) can't tell
55. A 75% confidence interval for the population mean when the sample mean is 50, the
sample standard deviation is 20, and the sample size is 36, is:
A) [45.11, 55.12]
B) [43.47, 56.53]
C) [46.17, 53,83]
D) [47.70, 52.30]
E) can't tell

56. I want to construct a 95% confidence interval for the population mean. My sample
mean is 7.5 and my sample standard deviation is 7. The confidence interval is:
A) [0.5, 14.5]
B) [-6.22, 21.22]
C) [-1.96, 1.96]
D) can't do
57. I need a 90% confidence interval for the population mean. My sample mean is 100,
my sample standard deviation is 20, and my sample size is 5. The confidence interval
is:
A) [-1.645, 1.645]
B) [93.42, 106.58]
C) [85.29, 114.71]
D) [80.93, 119.07]
58. 1 want to construct an 85% confidence interval for the population mean. My sample
mean is 80 and my sample standard deviation is 10. The sample size is 100. The
confidence interval is:
A) [78.56, 81.44]
B) [78.04, 81.96]
C) [79.86, 80.14]
D) can't do
59. Compare the widths of several confidence intervals, all based on the same sample
mean, standard deviation, and sample size: 80%, 90%, 98%. Which is the narrowest
interval?
A) 80%
B) 90%
C) 98%
D) all are equal

60. A confidence interval for the mean based on a sample size of 1,000 will be narrower
than a confidence interval for the mean based on the same sample information (sample
mean, standard deviation, and confidence level) based on a sample of size 100.
A) true
B) false
C) can't tell
Use the following to answer questions 61-62:
While looking over the results of a preliminary survey, a consultant to a political campaign
has observed that in a random sample of 100 likely voters, 55 favor her candidate. Deciding to
follow up with a more detailed survey, the consultant hopes to accomplish two things. First,
she wants interval limits that have a 95% likelihood of containing the true proportion of voters
that favor her candidate. Second, she wants the confidence interval to be no more than 0.10
wide.
61. Assuming that the result of the preliminary survey was unbiased, how big a sample
size will be required to accomplish both goals?
A) 267
B) 381
C) 497
D) 1,066
E) 1,525
62. Supposed that in her follow-up survey the consultant uses a sample size of 800 and
observes 432 likely voters favoring her candidate. What would her 95% confidence
interval for the true population proportion be?
A) [0.4311, 0.4889]
B) [0.5005, 0.5795]
C) [0.5111, 0.5689]
D) [0.5055, 0.5745]
E) None of the above

63. Upper and lower interval limits for a 90% confidence interval for are, respectively,
180 cm and 220 cm. We would infer from these limits a __________ likelihood that
__________.
A) 5%; is no more than 220 cm
B) 95%; is no more than 180 cm
C) 90%; the interval from 180 cm to 220 cm contains the true population mean
D) Only A and B are correct
E) A, B & C are correct
Answer: C Type: Concept Difficulty: Hard
64. A health insurance company needs information on the average fee charged for a
particular treatment. A random sample of 10 yields a sample average of $89.36 with a
standard deviation of $13.21. What would a 90% confidence interval for , the average
fee for this treatment, be?
A) [$83.90, $94.82]
B) [$83.58, $95.14]
C) [$82.14, $96.58]
D) [$81.70, $97.02]
E) [$79.91, $98.81]
Answer: D Type: Computation Difficulty: Hard
65. An interval's confidence level, calculated as ___________, provides an estimate of the

likelihood that it contains the ___________ of interest.
A) (1-)*100%; population parameter
B) (1-)*100%; sample statistic
C) (1-/2)*100%; population parameter
D) (1-/2)*100%; sample statistic
E) (*100%); population parameter
66. A 95% confidence interval for is being formulated based on a sample of 16. What is
the appropriate value for t?
A) 1.746
B) 2.120
C) 2.131
D) 2.473
E) 2.490
Answer: C Type: Computation Difficulty: Easy

67. A confidence interval for the population variance is being formulated, and a random
sample of 35 observations yields a sample variance 2 = 2,120. What would interval
limits for 2 be if a 95% confidence interval was desired?
A) 1,483.1, 3,327.8
B) 1,387.0, 3,638.6
C) 1,308.4, 3,951.8
D) 1,227.5, 4,368.5
E) 1,167.5, 4,689.7
68. A 99% confidence interval for s2 is being formulated based on a sample of 16

observations. What are appropriate values for 2?
A) 2Lower = 4.07; 2Upper = 34.95
B) 2Lower = 4.07; 2Upper = 31.32
C) 2Lower = 4.60; 2Upper = 32.80
D) 2Lower = 5.14; 2Upper = 34.27
E) 2Lower = 5.23; 2Upper = 30.58
Answer: C Type: Concept Difficulty: Easy
69. After taking a random sample of 19 observations, a statistician calculates a sample

average of 42.15 with a standard deviation of 6.14. A 95% confidence interval for 2 is
formulated with a lower interval limit of 21.52 and an upper interval limit of 82.45.
Which of the following inferences about 2 is most accurate?
A) P(21.52 2 82.45) = 0.95
B) P(21.52 2 82.45) = 0.05
C) P(2 < 21.52) + P(2 > 82.45) = 0.05
D) P(2 < 21.52) + P(2 > 82.45) = 0.95
E) Both B & C are accurate
Answer: E Type: Concept Difficulty: Medium
Short Answer Questions
70. A pharmaceutical company interested in estimating the market share held by Noloss,
its anti-baldness drug, randomly samples prescriptions for baldness drugs filled by a
nationwide pharmacy chain. Of the 300 prescriptions for baldness drugs sampled, 64
of them were for Noloss. What is a 90% confidence interval for Noloss' market share?
Answer: 0.2133 1.645*[0.2133*0.7867/300] = [0.1745, 0.2521]

Type: Computation Difficulty: Medium


Use the following to answer questions 71-72:
A professional sports team has hired a marketing research team to estimate the likelihood of
an accommodations tax referendum's passing in the upcoming election. In a preliminary study
done recently by some local college students, 52% of the voters surveyed were in favor of the
referendum. The students' professor cautioned, however, that the students' estimate had a
margin of error of 4% (that is, the professor couldn't rule out the referendum's receiving 49%
or less of the votes at the polls).
71. Given the students' preliminary findings, how big a sample will be required in the
follow-up survey if a 99% confidence interval that is only 3% wide is desired?
Answer: Assuming the initial estimate of 52% isn't biased, a sample size of
approximately 7,385 will be required. If uncomfortable with using the initial estimate,
approximately 7,395 will be required. Type: Computation Difficulty: Hard
72. Suppose in the follow-up survey, a sample size of 2,500 was chosen. In that random
sample of likely voters, 1,341 said they were in favor of the referendum. What is a
99% confidence interval for the proportion of voters in favor of the referendum?
Answer: 0.5364 2.58*[0.5364*0.4636/2500] = [0.5107, 0.5621]

73. A test on 16 motorboats reveals that the boat runs continuously for 11.2 hours, on the
average, on a full tank, with a standard deviation of 2.3 hours. Construct a 95%
confidence interval for the mean time the boat runs.
Answer: [9.975, 12.429] - 11.2 (2.131)(2.3/4) Type: Computation

Difficulty: Medium
74. A phone company finds from its previous records over 30 days that the mean number
of phones that are out of order on a given day is 54. The standard deviation is 6.5.
Construct a 90% confidence interval for the mean number of phones that are out of
order.
Answer: [52.04, 55.952] - 54 (1.645)(6.5/sq rt 30) Type: Computation

Difficulty: Medium

75. An insurance company is interested in the number of accidents in the city per day.
Over the last 30 days, there have been a mean number of 4.5 accidents per day, with a
standard deviation of 1.3. Construct a 95% confidence interval for the mean number of
accidents per day.
Answer: [0.7394, 0.8206] - .78 1.96(1.3/sq rt 30) Type: Computation

Difficulty: Medium
76. A company has installed a new photocopier and is interested in estimating the number
of employees who like the new machine. Out of a total of 2,290 employees, 400 were
randomly selected and interviewed. Of those interviewed, 312 like the copier.
Construct a 95% confidence interval for the proportion of all employees who are
satisfied.
Answer:
0.7294,0.8206 .78 1.96 .78(.22) / 400
77. American Express wants to estimate the amount of cash their customers withdraw
using their card, in one day. A sample of 144 customers reveals that the amount
withdrawn is $260, with a standard deviation of $25. Construct a 99% confidence
interval for the average amount withdrawn.
Answer: [254.6, 265.4] - 260 (2.575(25/12)

78. An ice manufacturer measures the weight of 100 ice cubes made in his plant and finds
a variance of 9 cubic grams. Construct a 95% confidence interval for the population
variance.
Answer: [6.938, 12.146] Type: Computation Difficulty: Medium
79. A car rental company finds that approximately 5% of the cars rented are returned
damaged. This company wants to know the population proportion to within 0.01 with
a 95% confidence. What is the minimum required sample size?
Answer: 1825 - [(1.96) 2 x (.05)(.95)]/(.01)2 Type: Computation

Difficulty: Medium

80. A soap manufacturer surveys 36 individuals in the market and finds that 27 like her
soap. Construct a 95% confidence interval for the proportion of individuals that like
her soap.
Answer:
0.6085,0.8915.27 1.96 .27 (.73) / 36
81. In a store, it is experienced that approximately 10% of the customers return the
merchandise they buy. The management wants to know within 0.03 with 95%
confidence, the population proportion who return their merchandise. What is the
minimum sample size required?
Answer: 385 - (.1)(.9)(1.96)2/(.03)2 Type: Computation Difficulty: Medium
82. An advertising agency finds that out of 100 of its clients, 64 have an annual budget of
more than $10 million. Construct a 95% confidence interval for the proportion of
clients who have a budget of more than $10 million.
Answer: [0.5459, 0.7341] .64 (1.96) (.64 x .36)/100 Type: Computation

Difficulty: Medium
83. Each morning, the contents of randomly chosen bottles from the previous day's output
of a bottling machine are accurately measured. Today, the following measurements (in
ounces) were observed:
12.06 11.99 11.92 11.98 11.70 11.79 11.93 11.86 11.95 11.96 11.80
11.98 11.93 11.95 11.96 12.18
Find a 95% confidence interval for the average contents of all bottles filled by that
machine the previous day.
Answer: [11.875, 11.993] Type: Concept Difficulty: Medium

84. Each morning, the contents of randomly chosen bottles from the previous day's output
of a bottling machine are accurately measured. Today, the following measurements (in
ounces) were observed:
11.95 12.01 12.01 11.96 12.05 12.06 11.94 12.18 11.94 12.22 12.15
11.87 11.91 12.22 12.04 11.80 12.14 12.07 12.07 12.09 12.01 11.96
12.08 12.03 12.10
Find a 95% confidence interval for the average contents of all bottles filled by that
machine the previous day.
Answer: [11.9912, 12.0776] Type: Concept Difficulty: Medium

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Chapter 6 Confidence Intervals

1. The confidence coefficient for a 95% confidence interval is z = 1.645.

Answer: False Type: Computation Difficulty: Easy

2. The confidence coefficient for an 80% confidence interval is z = 1.28.

Answer: True Type: Computation Difficulty: Easy

Answer: False Type: Concept Difficulty: Medium

Answer: True Type: Concept Difficulty: Medium

5. When s is unknown, the chi-square distribution is used to construct confidence

Answer: False Type: Concept Difficulty: Medium

6. When using the t-distribution to construct a confidence interval on the population

Answer: True Type: Concept Difficulty: Easy

7. The variance of a chi-square distribution is equal to the degrees of freedom.

Answer: False Type: Concept Difficulty: Medium

Answer: True Type: Concept Difficulty: Easy

Answer: False Type: Concept Difficulty: Easy

Aczel, Complete Business Statistics, Sixth Edition 1

10. Confidence intervals depend on the standard deviation of the distribution.

Answer: True Type: Concept Difficulty: Easy

Answer: False Type: Concept Difficulty: Easy

Multiple Choice Questions

Answer: A Type: Computation Difficulty: Medium

Answer: B Type: Computation Difficulty: Medium

2 Aczel, Complete Business Statistics, Sixth Edition

Answer: C Type: Computation Difficulty: Medium

Answer: A Type: Concept Difficulty: Easy

Answer: A Type: Computation Difficulty: Medium

Answer: E Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition 3

18. A 99% confidence interval can be interpreted as:

Answer: B Type: Computation Difficulty: Medium

Answer: D Type: Computation Difficulty: Medium

Answer: D Type: Computation Difficulty: Medium

Answer: D Type: Computation Difficulty: Medium

4 Aczel, Complete Business Statistics, Sixth Edition

Answer: C Type: Computation Difficulty: Medium

Answer: B Type: Concept Difficulty: Medium

Answer: C Type: Computation Difficulty: Medium

Answer: C Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition 5

6 Aczel, Complete Business Statistics, Sixth Edition

Answer: C Type: Computation Difficulty: Medium

Answer: B Type: Computation Difficulty: Medium

Answer: E Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition 7

Answer: A Type: Computation Difficulty: Medium

Answer: B Type: Computation Difficulty: Medium

Answer: E Type: Computation Difficulty: Medium

8 Aczel, Complete Business Statistics, Sixth Edition

Answer: D Type: Computation Difficulty: Medium

Answer: C Type: Computation Difficulty: Medium

Answer: C Type: Computation Difficulty: Medium

Answer: C Type: Concept Difficulty: Easy

Aczel, Complete Business Statistics, Sixth Edition 9

10 Aczel, Complete Business Statistics, Sixth Edition

36. When is the t-distribution used in the construction of confidence intervals?

Answer: A Type: Concept Difficulty: Easy

Answer: D Type: Concept Difficulty: Medium

Answer: A Type: Computation Difficulty: Medium

Answer: E Type: Concept Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition 11

Answer: A Type: Concept Difficulty: Medium

Answer: C Type: Computation Difficulty: Medium

Answer: A Type: Computation Difficulty: Hard

Answer: 0.2133 1.645[0.21330.7867/300] = [0.1745, 0.2521]

Answer: 0.5364 2.58[0.53640.4636/2500] = [0.5107, 0.5621]