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1.

It has been found that times taken by people to complete


a particular tax form follow a normal distribution
with a mean of 100 minutes and a standard deviation
of 30 minutes. A random sample of nine people who
have completed this tax form was taken.
a. What is the probability that the sample mean time
taken is more than 120 minutes?
b. The probability is 0.20 that the sample mean time
taken is less than how many minutes?
c. The probability is 0.05 that the sample standard
deviation of time taken is less than how many
minutes?

2.

A college admissions officer for an MBA program has


determined that historically applicants have undergraduate
grade point averages that are normally distributed
with standard deviation 0.45. From a random
sample of 25 applications from the current year, the
sample mean grade point average is 2.90.
a. Find a 95% confidence interval for the population
mean.
b. Based on these sample results, a statistician computes
for the population mean a confidence interval
extending from 2.81 to 2.99. Find the confidence
level associated with this interval.

3.

A car-rental company is interested in the amount of


time its vehicles are out of operation for repair work.
State all assumptions and find a 90% confidence interval
for the mean number of days in a year that all
vehicles in the companys fleet are out of operation if
a random sample of nine cars showed the following
number of days that each had been inoperative:
16 10 21 22 8 17 19 14 19

4.

In a presidential election year, candidates want to know


how voters in various parts of the country will vote.
Suppose that 1 month before the election a random sample
of 540 registered voters from one geographic region
is surveyed. From this sample 320 indicate that they
plan to vote for this particular candidate. Based on this
survey data, find the 95% confidence interval estimate of
this candidates current support in this geographic area.

5.

Determine the margin of error for a 95% confidence


interval for the difference between population means
for each of the following (assume equal population
variances):
b.

nx = 5 s2x= 6 x = 200
ny = 8 s2y= 10 y = 160

6.

A company selling licenses for new e-commerce computer


software advertises that firms using this software
obtain, on average during the first year, a yield
of 10% on their initial investments. A random sample
of 10 of these franchises produced the following yields
for the first year of operation:
6.1 9.2 11.5 8.6 12.1 3.9 8.4 10.1 9.4 8.9

7.

You have been asked to determine if two different


production processes have different mean numbers
of units produced per hour. Process 1 has a mean defined
as m1 and process 2 has a mean defined as m2.
The null and alternative hypotheses are as follows:
H0 : m1 - m2 0
H1 : m1 - m2 7 0
The process variances are unknown but assumed to
be equal. Using random samples of 25 observations
from process 1 and 36 observations from process 2, the
sample means are 56 and 50 for populations 1 and 2,
respectively. Can you reject the null hypothesis using
a probability of Type I error a = 0.05 in each case?
a. The sample standard deviation from process 1 is 30
and from process 2 is 28.

8.

A random sample of data for 7 days of operation produced


the following (price, quantity) data values:
Price per Gallon of Paint, X Quantity Sold, Y
10
100

8
5
4
10
7
6

120
200
200
90
110
150

a. Compute and interpret b1.


b. Compute and interpret b0.
c. How many gallons of paint would you expect to sell
if the price is $7 per gallon?
9.