Question 1 (a)

Customers of MyTVLab using PAF as a payment medium from the sample = 22

Customers of MyTVLab using Conbanco as a payment medium from the sample = 28

Total customers in the sample= 50

Therefore, p̂=22/50 = 0.44 and q̂ =28/50=0.56

Using Hypothesis testing,

H0: p=q=0.5

H1: p≠q

n=50, np = 0.44*50 = 22 which Is greater than 5

nq = 0.56*50= 28, which is greater than 5

Since both of them (np and nq) are greater than 5, normal approximation can be assumed.

𝑝̂−𝑞̂ 0.44−0.56 −0..06

Z= 𝑝𝑞 = 0.56 = 0.0707 = 0.8485
√( ) √(0.44∗ )
𝑛 50

Assuming the confidence level as 95%, we can get α= (1-0.95) = 0.05

Now, from the z table, if our z value lies inside the green region, we will not reject the null
hypothesis H0.
The z value at -0.025 and 0.025 comes out to be -1.96 and +1.96 respectively. Now since our
calculated z value is between these two limits, we will not reject the null hypothesis H0.

Therefore, the speculation by Mr. Rajan that there are unequal number of users of PAF and
Conbanco is void which can be said with 95% confidence level.

Question No: 2 – Exercise no.25, page no. 321

2.a

Given,

Sample size of test takers (n) = 90

Mean value for critical reading test (µ)= 502

Standard deviation (sigma) = 100

Required probability is P[492 ≤ xbar ≤ 512] = P[492 ≤ (xbar - µ)/(sigma/sqrt(n)) ≤ 512]

On substituting the values, we get values of z as -0.948 and +0.948

From the values of z, the probability lies between 0.1711 and 0.8289

Therefore, the final probability is 0.8289 – 0.1711 = 0.6578

2.b.

Given,

Sample size of test takers (n) = 90

Mean value for Mathematics (µ)= 515

Standard deviation (sigma) = 100

Required probability is P[495 ≤ xbar ≤ 515] = P[495 ≤ (xbar - µ)/(sigma/sqrt(n)) ≤ 515]

On substituting the values, we get values of z as -0.948 and +0.948

From the values of z the probability lies between 0.1711 and 0.8289

Therefore, the final probability is 0.8289 – 0.1711 = 0.6578

The probability of mathematics test upon comparing with critical reasoning test is the same because
of the same sample size and the same standard deviation.

2.c.

Given,

Sample size of test takers (n) = 100

Mean value for writing (µ) = 494

Standard deviation (sigma) = 100

Required probability is P[484 ≤ xbar ≤ 504] = P[484 ≤ (xbar - µ)/(sigma/sqrt(n)) ≤ 504]

On substituting the values, we get values of z as -1 and 1

From the values of z, the probability lies between 0.1587 and 0.8413

Therefore, the final probability is 0.8413 – 0.1587 = 0.6826

The probability of the writing test is more when compared to the probabilities of mathematics and
critical reading. It is because of the large sample size in writing test compared to that of the other
two.

Question No: 3 – Exercise no.30, page no. 362

Q.no. 30

Given,

Confidence interval value is 95%

On the distribution curve the limits for z will be -0.025 and +0.0.25

The value of z will be -1.96

Standard deviation (sigma) = 2000

Error margin (xbar - µ)= 100

Sample size (n) =? (Need to find out)

Z = -1.96 = (xbar - µ)/(sigma/sqrt(n))

-1.96 = -100/(2000/sqrt(n))

Solving for n we get value of n = 1536.64

A sample size of 1537 should be used for the survey.