1.

Suppose a US car rental firm wants to estimate the average number of miles travelled per day by each of its cars rented in California. A random sample of 110 cars rented in California reveals that the sample mean travel distance per day is 85.5 miles, with a sample standard deviation of 19.3 miles. Compute a 99% confidence interval to estimate . 2. A small lawnmower company produced 1,500 lawnmowers in 1990. In an effort to determine how maintenance-free these units were, the company decided to conduct a multiyear study of the 1990 lawnmowers. A sample of 200 owners of these lawnmowers was drawn randomly from company records and contacted. The owners were given an 800 number and asked to call the company when the first major repair was required for the lawnmowers. Owners who no longer used the lawnmower to cut their grass were disqualified. After many years, 187 of the owners had reported. The other 13 disqualified themselves. The average number of years until the first major repair was 5.3 for the 187 owners reporting, and the sample standard deviation was 1.28 years. If the company wants to advertise an average number of years of repair- free lawn mowing for this lawnmower, what is the point estimate? Construct a 95% confidence interval for the average number of years until the first major repair. 3. The Marketing director of a large department store wants to estimate the average number of customers who enter the store every 5 minutes. She randomly selects 5 minute interval sand counts the number of arrivals at the store. She obtains the figures 58, 32, 41, 47, 56, 80, 45, 29, 32, and 78. The analyst assumes the number of arrivals in normally distributed. Using these data, analyst computes a 95% confidence interval to estimate the mean value for all 5-minute intervals. What interval values does she get? 4. A clothing company produces men s jeans. The jeans are made and sold with either a regular cut or a boot cut. In an effort to estimate the proportion of their men s jeans market in Oklahoma City that prefers boot cut jeans, the analyst takes a random sample of 212 jeans sales from the company s two Oklahoma City retail outlets. Only 34 of the sales were for boot-cut jeans. Construct a 90% confidence interval to estimate the population proportion in Oklahoma city who prefer boot-cut jeans. 5. The International Airport Association Surveys business travelers to develop quality rating for transatlantic gateway airports. The Maximum possible rating is 10. Suppose a simple random sample of 50 business travelers is selected and each traveler is asked to provide a rating for Miami international Airport. The rating obtained from sample of 50 business traveler follows. 6 4 6 8 7 7 6 3 3 8 10 4 8 7 8 7 5 9 5 8 4 3 8 5 5 4 4 4 8 4 5 6 2 5 9 9 8 4 8 9 9 5 9 7 8 3 10 8 9 6 Develop a 95% confidence interval estimate of the population mean rating for Miami. 6. The mean number of hours of flying time for pilots at Continental Airlines is 49 hours per month. Assume that this mean was based on actual flying times for a sample of 100 Continental pilots and that the sample standard deviation was 8.5 hours. a. At 95% confidence what is the margin error? b. What is the 95% confidence interval estimate of the population mean flying time for the pilots? 7. During the first quarter of 2003, the price/earnings (P/E) ratio for stocks listed on the New York Stock Exchange generally ranged from 5 to 60. Assume that we want to estimate the population mean P/E ratio for all stocks listed on the exchange. How many stocks should be included in the sample if we want a margin of error of 3? Use 95% confidence.

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A survey by Society for Human Resource Management asked 346 job seekers why employees change jobs so frequently. The answer selected most (152 times) was higher compensation elsewhere . a. What is the point estimate of the proportion of job seekers who would select higher compensation elsewhere as the reason for changing job? b. What is the 95% confidence interval estimate of the population proportion?