ch08 - Operations Research Solution

CHAPTEREIGHT
StatisticalInference:EstimationforSinglePopulations
B
1.
When a statistic calculated from sample data is used to estimate

a population parameter, it is called _______.
M
Term
A.
B.
C.
D.
When a range of values is used to estimate a population

parameter, it is called _______.
2.
E
Term
A.
B.
C.
D.
an interval estimate
a point estimate
a statistical parameter
a good guess
a point estimate
a range estimate
201
202 Test Bank

A
3. Catherine Chao, Director of Marketing Research, is evaluating
consumer acceptance of a new toothpaste package. Her staff
reports that 17% of a random sample of 200 households prefer
the new package to all other package designs. If Catherine
concludes that 17% of all households prefer the new package,
she is using a _______.
M
BApp
A.
B.
C.
D.
Brian Vanecek, VP of Operations at Portland Trust Bank, is

evaluating the service level provided to walk-in customers.
Accordingly, his staff recorded the waiting times for 45 randomly
selected walk-in customers, and calculated that their mean
waiting time was 15 minutes. If Brian concludes that the
average waiting time for all walk-in customers is 15 minutes, he
is using a ________.
4.
a point estimate
a range estimate
M
BApp
A.
B.
C.
D.
Eugene Gates, Marketing Director of Mansfield Motors

Manufacturers, Inc.s Electrical Division, is leading a study to
assess the relative importance of product features. An item on a
survey questionnaire distributed to 100 of Mansfields customers
asked them to rate the importance of ease of maintenance on
a scale of 1 to 10 (with 1 meaning not important and 10
meaning highly important). His staff assembled the following
statistics.
Ease of Maintenance
Mean
7.5
Standard
1.5
De
via
tio
n
If Eugene concludes that the average rate of ease of
maintenance for all customers is 7.5, he is using ________.
5.
M
BApp
a range estimate
a point estimate
A. arange estimate
B. a statistical parameter
Chapter 8: Statistical Inference: Estimation for Single

Populations
203
C. a point estimate
D. an interval estimate
204 Test Bank

A
6. Eugene Gates, Marketing Director of Mansfield Motors
asked them to rate the importance of efficiency of operation
on a scale of 1 to 10 (with 1 meaning not important and 10
statistics.
Efficiency of
Operation
Mean
6.0
Standard
2.5
De
via
tio
n
If Eugene concludes that the average rate of efficiency of
operation for all customers is 6.0, he is using ________.
M
BApp
A.
B.
C.
D.
Mary Flindt, a Marketing Director with Epsilon Airlines, is

assessing the relative importance of the "total flight"
experience. An item on a survey questionnaire distributed to
100 of Epsilon's customers asked them to rate the importance of
on-time arrival on a scale of 1 to 10 (with 1 meaning not
important and 10 meaning highly important). Her staff
assembled the following statistics from the responses.
On-time Arrival
Mean
9.1
Standard
2.5
De
via
tio
n
If Mary concludes that the average rate of on-time arrival for
all customers is 9.1, she is using ________.
7.
M
BApp
a point estimate
a range estimate
A. an interval estimate
B. a statistical parameter
C. a range estimate

Populations
205
D. a point estimate
206 Test Bank

D
8. Mary Flindt, a Marketing Director with Epsilon Airlines, is
cabin space on a scale of 1 to 10 (with 1 meaning not
Cabin Space
Mean
7.2
Standard
3.7
De
via
tio
n
If Mary concludes that the average rate of cabin space for all
customers is 7.2, she is using ________.
M
BApp
A.
B.
C.
D.
The Z value associated with a two-sided 90% confidence interval

is _______.
9.
a range estimate
a point estimate
E
Calc
A.
B.
C.
D.

is _______.
10.
1.28
1.645
1.96
2.575
E
Calc
A.
B.
C.
D.

is _______.
11.
E
Calc
A.
B.
C.
D.
1.28
1.645
1.96
2.575
1.645
1.28
0.84
0.29

Populations
207
208 Test Bank

B 12. The Z value associated with a two-sided 88% confidence interval
is _______.
E
Calc
A.
B.
C.
D.
D 13.

is _______.
E
Calc
A.
B.
C.
D.

is _______.
14.
1.28
1.55
1.17
0.88
1.41
0.92
0.46
1.75
E
Calc
A.
B.
C.
D.
D 15.
Suppose a random sample of 36 is selected from a population

with a standard deviation of 12. If the sample mean is 98, the
99% confidence interval to estimate the population mean is
_______.
M
Calc
A.
B.
C.
D.

90% confidence interval for the population mean is _______.
16.
M
Calc
A.
B.
C.
D.
1.41
1.34
0.46
1.75
94.08 to 101.92
92.85 to 103.15
97.35 to 98.65
93.34 to 102.66
94.71 to 101.29
97.45 to 98.55
94.08 to 101.92
97.35 to 98.65
17.

Populations
209
95% confidence interval for the population mean is _______.
M
Calc
A.
B.
C.
D.
Suppose a random sample of size 64 is selected from a

population. The sample yields a mean of 26 and a standard
deviation of 4. From this information, the 90% confidence
interval to estimate the population mean can be computed to be
_______.
18.
94.71 to 101.29
97.45 to 98.55
94.08 to 101.92
97.35 to 98.65
M
Calc
A.
B.
C.
D.
BrianVanecek,VPofOperationsatPortlandTrustBank,isevaluatingtheservice
levelprovidedtowalkincustomers.Accordingly,hisstaffrecordedthewaiting
timesfor64randomlyselectedwalkincustomers,anddeterminedthattheirmean
waitingtimewas15minutesandthatthestandarddeviationwas4minutes.The
90%confidenceintervalforthepopulationmeanofwaitingtimesis________.
19.
25.36 to 26.64
25.92 to 26.08
25.18 to 26.82
25.90 to 26.10
M
BCalc
A.14.27to15.73
B.14.06to15.94
C.9.88to20.12
D.13.86to16.14
20.
M
BCalc
A.13.88to16.12
B.7.16to22.84
C.14.06to15.94
D.8.42to21.58
210 Test Bank

D 21. BrianVanecek,VPofOperationsatPortlandTrustBank,isevaluatingtheservice
M
BCalc
A.8.80to21.20
B.14.33to15.67
C.10.30to19.70
D.14.11to15.89
James Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 100 tellers
in the Southeast Region,anddeterminedthattheirmeantrainingtimewas
25hoursandthatthestandarddeviationwas5hours.The88%confidence
intervalforthepopulationmeanoftrainingtimesis________.
22.
M
BCalc
A.17.25to32.75
B.24.23to25.78
C.24.42to25.59
D.19.15to30.85
D 23.

M
BCalc
A.16.25to33.75
B.24.30to25.71
C.17.95to32.05
D.24.13to25.99
24.

Populations
211
M
BCalc
A.15.20to34.80
B.24.18to25.82
C.24.02to25.98
D.16.78to33.23
Eugene Gates, Marketing Director of Mansfield Motors

statistics.
Ease of Maintenance
Mean
7.5
Standard
1.1
De
via
tio
n
The90%confidenceintervalforthepopulationmeanratingofease of
maintenance is ________.
25.
M
BCalc
A. 5.34 to 9.66
B. 7.34 to 7.66
C. 5.69 to 9.31
D. 7.30 to 7.70
212 Test Bank

D 26. Eugene Gates, Marketing Director of Mansfield Motors
statistics.
Ease of Maintenance
Mean
7.5
Standard
1.1
De
via
tio
n
The95%confidenceintervalforthepopulationmeanratingofease of
maintenance is ________.
M
BCalc
A.
B.
C.
D.
Mary Flindt, a Marketing Director with Epsilon Airlines, is

Cabin Space
Mean
7.2
Standard
3.7
De
via
tio
n
The95%confidenceintervalforthepopulationmeanratingofcabin space
is ________.
27.
M
BCalc
A.
B.
C.
D.
5.34 to 9.66
7.34 to 7.66
5.69 to 9.31
7.30 to 7.70
6.47 to 7.93
0.00 to 14.45
0.00 to 6.47
6.47 to 14.45

Populations
213
214 Test Bank

C 28. Mary Flindt, a Marketing Director with Epsilon Airlines, is
Cabin Space
Mean
7.2
Standard
3.7
De
via
tio
n
The99%confidenceintervalforthepopulationmeanratingofcabin space
is ________.
M
BCalc
A.
B.
C.
D.
A random sample of 64 items is selected from a population of

400 items. The sample mean is 200 and the sample standard
deviation is 48. From this data, a 95% confidence interval to
estimate the population mean can be computed as _______.
29.
0.00 to 7.39
0.00 to 14.45
6.33 to 8.07
6.47 to 14.45
M
Calc
A.
B.
C.
D.
189.21 to 210.79
188.24 to 211.76
190.13 to 209.87
190.94 to 209.06
D 30.
A random sample of 64 items is selected from a population of

400 items. The sample mean is 200 and the sample standard
deviation is 48. From this data, a 90% confidence interval to
estimate the population mean can be computed as _______.
M
Calc
A.
B.
C.
D.
189.21 to 210.79
188.24 to 211.76
190.13 to 209.87
190.94 to 209.06
31.

Populations
215
A researcher wants to estimate the proportion of the population
which possess a given characteristic. A random sample of size
600 is taken resulting in 330 items which possess the
characteristic. The point estimate for this population proportion
is _______.
E
Calc
A.
B.
C.
D.
The normal distribution is used to test about a population mean

for large samples. "Large" is usually defined as _______.
32.
0.55
0.33
0.60
0.45
E
Term
A.
B.
C.
D.
The t test was developed by _______.
33.
at least 100
at least 5% of the population size
at least 30
at least 12
E
Term
A.
B.
C.
D.
The t-distribution is similar to a normal distribution. However

the t-distribution is _______.
34.
Charles Student
William Gosset
deMoivre
Gauss
M
Term
A.
B.
C.
D.
The t-distribution is similar to a normal distribution. However

the t-distribution is a _______.
35.
M
Term
A.
B.
C.
D.
not symmetric
bimodal
flatter
discrete
leptokurtic distribution
platykurtic distribution
mesopotamian distribution
discrete distribution
216 Test Bank

B 36. In order to find values in the t distribution table, you must
convert the sample size or sizes to _______.
E
Term
A.
B.
C.
D.
If the degrees of freedom in a t distribution get very large,

_______.
37.
population sizes
degrees of freedom
Z values
student values
M
Term
A.
B.
C.
D.
The table t value associated with the upper 5% of the t

distribution and 12 degrees of freedom is _______.
38.
the t values and the Z values are almost the same

the sample size must be very small
the population size must be very large
the sample mean approaches zero
E
Calc
A.
B.
C.
D.
D 39.

E
Calc
A.
B.
C.
D.

40.
E
Calc
A.
B.
C.
D.
2.179
1.782
1.356
3.055
2.977
2.624
2.145
1.761
1.319
1.714
2.069
1.321
41.

Populations
217
E
Calc
A.
B.
C.
D.

42.
4.032
3.365
3.747
1.476
E
Calc
A.
B.
C.
D.
D 43.

E
Calc
A.
B.
C.
D.
The table t value associated with the upper 0.5% of the t

44.
1.333
1.337
1.740
2.567
2.947
2.602
2.131
1.753
E
Calc
A.
B.
C.
D.
The table t value associated with 10 degrees of freedom and

used to compute a 95% confidence interval is _______.
45.
E
Calc
A.
B.
C.
D.
4.604
2.776
2.132
2.353
1.812
2.228
3.169
1.372
218 Test Bank

B 46. The table t value associated with 12 degrees of freedom and
E
Calc
A.
B.
C.
D.
The table t value associated with 21 degrees of freedom and

47.
3.055
2.179
1.782
1.796
E
Calc
A.
B.
C.
D.
The table t value associated with 8 degrees of freedom and used

to compute a 99% confidence interval is _______.
48.
1.323
1.721
2.080
2.518
E
Calc
A.
B.
C.
D.
A researcher is interested in estimating the mean value for a

population. She takes a random sample of 17 items and
computes a sample mean of 224 and a sample standard
deviation of 32. She decides to construct a 98% confidence
interval to estimate the mean. The degrees of freedom
associated with this problem are _______.
49.
E
Calc
A.
B.
C.
D.
1.397
1.860
3.355
2.896
18
17
16
15
50.

Populations
219
The lengths of steel rods produced by a shearing process are
normally distributed. A random sample of 10 rods is selected;
the sample mean length is 119.05 inches; and the sample
standard deviation is 0.10 inch. The95%confidenceintervalforthe
populationmeanrodlengthis ______________.
M
BCalc
A.
B.
C.
D.
The lengths of steel rods produced by a shearing process are

normally distributed. A random sample of 10 rods is selected;
the sample mean length is 119.05 inches; and the sample
standard deviation is 0.10 inch. The90%confidenceintervalforthe
populationmeanrodlengthis ______________.
51.
118.99 to 119.11
118.82 to 119.28
118.98 to 119.12
118.85 to 119.25
M
BCalc
A.
B.
C.
D.
The weights of aluminum castings produced by a process are

normally distributed. A random sample of 5 castings is selected;
the sample mean weight is 2.21 pounds; and the sample
standard deviation is 0.12 pound. The98%confidenceintervalforthe
populationmeancastingweight is _________.
52.
118.99 to 119.11
118.87 to 119.23
119.00 to 119.10
118.89 to 119.21
M
BCalc
A.
B.
C.
D.
1.76 to 2.66
2.01 to 2.41
2.08 to 2.34
1.93 to 2.49
D 53.
Life tests performed on a sample of 13 batteries of a new model

indicated: (1) an average life of 75 months, and (2) a standard
deviation of 5 months. Other battery models, produced by
similar processes, have normally distributed life spans. The98%
confidenceintervalforthepopulationmeanlifeofthenewmodel is _________.
M
BCalc
A.
B.
C.
D.
63.37 to 86.63
61.60 to 88.41
71.77 to 78.23
71.28 to 78.72
220 Test Bank

C 54. Life tests performed on a sample of 13 batteries of a new model
indicated: (1) an average life of 75 months, and (2) a standard
deviation of 5 months. Other battery models, produced by
similar processes, have normally distributed life spans. The90%
confidenceintervalforthepopulationmeanlifeofthenewmodel is _________.
M
BCalc
A.
B.
C.
D.
A researcher wants to estimate the proportion of the population

800 is taken resulting in 360 items which possess the
characteristic. The point estimate for this population proportion
is _______.
55.
66.78 to 83.23
72.72 to 77.28
72.53 to 77.47
66.09 to 83.91
E
Calc
A.
B.
C.
D.
A researcher wants to estimate the proportion of a population

250 is taken and 40% of the sample possess the characteristic.
The 90% confidence interval to estimate the population
proportion is _______.
56.
0.55
0.45
0.35
0.65
M
Calc
A.
B.
C.
D.

57.
M
Calc
A.
B.
C.
D.
0.35 to 0.45
0.34 to 0.46
0.37 to 0.43
0.39 to 0.41
0.35 to 0.45
0.34 to 0.46
0.37 to 0.43
0.39 to 0.41
58.

Populations
221
M
Calc
A.
B.
C.
D.

59.
0.53 to 0.67
0.25 to 0.35
0.24 to 0.36
0.27 to 0.33
M
Calc
A.
B.
C.
D.
D 60.
A random sample of 225 items from a population results in 60%

possessing a given characteristic. Using this information, the
researcher constructs a 99% confidence interval to estimate the
population proportion. The resulting confidence interval is
_______.
M
Calc
A.
B.
C.
D.
A random sample of 225 items from a population results in 60%

possessing a given characteristic. Using this information, the
researcher constructs a 90% confidence interval to estimate the
population proportion. The resulting confidence interval is
_______.
61.
M
Calc
A.
B.
C.
D.
0.53 to 0.67
0.25 to 0.35
0.24 to 0.36
0.27 to 0.33
0.54 to 0.66
0.59 to 0.61
0.57 to 0.63
0.52 to 0.68
0.546 to 0.654
0.536 to 0.664
0.596 to 0.604
0.571 to 0.629
222 Test Bank

A 62. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of
GFS e-mail for non-business communications. A random sample
of 200 e-mail messages was selected. Thirty of the messages
were not business related. The point estimate for this population
0.300
0.182
0.667
E
BApp
A.
B.
C.
D.
Elwin Osbourne, CIO at GFS, Inc., is studying employee use of

were not business related. The90%confidenceintervalforthepopulation
proportion is _________.
63.
M
BCalc
A.
B.
C.
D.
D 64.

M
BCalc
A.
B.
C.
D.

65.
M
BCalc
A.
B.
C.
D.
0.108 to 0.192
0.153 to 0.247
0.091 to 0.209
0.145 to 0.255
0.108 to 0.192
0.153 to 0.247
0.091 to 0.209
0.101 to 0.199
0.108 to 0.192
0.153 to 0.247
0.091 to 0.209
0.145 to 0.255
66.

Populations
223
Catherine Chao, Director of Marketing Research, is evaluating
consumer acceptance of a new toothpaste package. She
randomly selects a sample of 200 households. Forty households
prefer the new package to all other package designs. The point
estimate for this population proportion is _______.
M
BCalc
A.
B.
C.
D.

prefer the new package to all other package designs. The90%
confidenceintervalforthepopulationproportion is _________.
67.
0.20
0.25
0.40
0.45
M
BCalc
A.
B.
C.
D.

prefer the new package to all other package designs. The95%
confidenceintervalforthepopulationproportion is _________.
68.
0.199 to 0.201
0.153 to 0.247
0.164 to 0.236
0.145 to 0.255
M
BCalc
A.
B.
C.
D.
Ophelia O'Brien, VP of Consumer Credit of American First Banks

(AFB), has implemented a 'fast feedback' to keep her informed
of the default rate on personal loans at the AFB member banks.
On each Friday, the default rate is calculated for a sample of 500
personal loans. Last Friday's sample contained 30 defaulted
loans. The point estimate for this population proportion is
_______.
69.
M
BCalc
0.153 to 0.247
0.199 to 02.01
0.145 to 0.255
0.198 to 0.202
A. 0.0002
B. 16.670
C. 0.0600
224
Test Bank
D. 0.0333
70.

Populations
225
loans. The90%confidenceintervalforthepopulationproportion is
_________.
M
BCalc
A.
B.
C.
D.
D 71.

loans. The95%confidenceintervalforthepopulationproportion is
_________.
M
BCalc
A.
B.
C.
D.
levelprovidedtowalkincustomers.Brianwouldliketominimizethevariance
ofwaitingtimeforthesecustomers,sincethiswouldmeaneachcustomer
receivedthesamelevelofservice.Accordingly,hisstaffrecordedthewaiting
waitingtimewas15minutesandthatthevariancewas4minutes.The90%
confidenceintervalforthepopulationvarianceofwaitingtimesis________.
72.
M
BCalc
0.043 to 0.077
0.046 to 0.074
0.039 to 0.081
0.028 to 0.060
0.043 to 0.077
0.046 to 0.074
0.028 to 0.060
0.039 to 0.081
A.9.46to34.09
B.56.25to64.87
C.11.05to16.03
D.8.58to39.79
226 Test Bank

D 73. BrianVanecek,VPofOperationsatPortlandTrustBank,isevaluatingtheservice
levelprovidedtowalkincustomers.Brianwouldliketominimizethevariance
ofwaitingtimeforthesecustomers,sincethiswouldmeaneachcustomer
receivedthesamelevelofservice.Accordingly,hisstaffrecordedthewaiting
waitingtimewas15minutesandthatthevariancewas4minutes.The95%
confidenceintervalforthepopulationvarianceofwaitingtimesis________.
M
BCalc
A.9.46to34.09
B.56.25to64.87
C.11.05to16.03
D.8.58to39.79
Velma Vasquez, fund manager of the Vasquez Value Fund,

manages a portfolio of 250 common stocks. Velma relies on
various statistics, such as variance, to assess the overall risk of
stocks in an economic sector. Her staff reported that for a
sample 14 utility stocks the mean annualized return was 14%
and that the variance was 3%. The90%confidenceintervalforthe
populationvarianceofannualizedreturnsis_______.
74.
M
BCalc
A.0.018to0.064
B.0.016to0.078
C.0.017to0.066
D.0.016to0.075
Velma Vasquez, fund manager of the Vasquez Value Fund,

manages a portfolio of 250 common stocks. Velma relies on
various statistics, such as variance, to assess the overall risk of
stocks in an economic sector. Her staff reported that for a
sample 14 utility stocks the mean annualized return was 14%
and that the variance was 3%. The95%confidenceintervalforthe
populationvarianceofannualizedreturnsis_______.
75.
M
BCalc
A.0.018to0.064
B.0.016to0.078
C.0.017to0.066
D.0.016to0.075
D 76.

Populations
227
in the Southwest Region,anddeterminedthattheirmeantrainingtimewas
intervalforthepopulationvarianceoftrainingtimesis________.
M
BCalc
A.11.83to83.33
B.2.37to16.67
C.2.66to13.51
D.13.30to67.57

in the Southwest Region,anddeterminedthattheirmeantrainingtimewas
intervalforthepopulationvarianceoftrainingtimesis________.
77.
M
BCalc
A.11.83to83.33
B.2.37to16.67
C.2.66to13.51
D.13.30to67.57
The finite correction factor should be used if the sample size is

_______.
78.
M
Term
A.
B.
C.
D.
In finding a confidence interval for the population mean, the

population standard deviation should be used if it is known. If
the population standard deviation is not known, then it should
be estimated with _______.
79.
E
Term
A.
B.
C.
D.
less than 5% of the population size

more than 5% of the population size
less than 30
more than 100
the sample variance

the sample standard deviation
the range
the mean
228 Test Bank

A 80. What proportion of a population possesses a given
characteristic? To estimate this, a random sample of 1700
people are interviewed from the population. Seven hundred and
fourteen of the people sampled possess the characteristic. Using
this information, the researcher computes an 88% confidence
interval to estimate the proportion of the population who
possess the given characteristic. The resulting confidence
interval is _______.
M
Calc
A.
B.
C.
D.
In estimating the sample size necessary to estimate a

population mean, the error of estimation, E, is equal to _______.
81.
E
Term
82.
0.401 to 0.439
0.409 to 0.431
0.392 to 0.448
0.389 to 0.451
A. the distance between the sample mean and the population

mean
B. the distance between the sample mean and the variance
C. the Z score
D. the sample size
In estimating sample size, if the population standard deviation is
unknown, it can be estimated by using _______.
M
Term
A.
B.
C.
D.
Suppose a researcher wants to conduct a study to estimate the

population mean. He plans to use a 95% level of confidence to
estimate the mean, and the population standard deviation is
approximately 34. The researcher wants the error to be no more
than 4. The sample size should be at least _______.
83.
M
Calc
A.
B.
C.
D.
the population mean

one-fourth of the range
one-half of the range
the Z score
7
196
278
1110
84.

Populations
229
banks. He plans to use a 95% confidence interval estimate of
meantrainingtimeoftellersandiswillingtoacceptanerrorof1hour;previous
studiesindicatedastandarddeviationof2hours.The sample size should
be at least _______.
M
BCalc
A.4
B.16
C.34
D.68

banks. He plans to use a 90% confidence interval estimate of
meantrainingtimeoftellersandiswillingtoacceptanerrorof1hour;previous
studiesindicatedastandarddeviationof5hours.The sample size should
be at least _______.
85.
M
BCalc
A.4
B.16
C.34
D.68
A researcher wants to determine the sample size necessary to

adequately conduct a study to estimate the population mean to
within 5 points. The range of population values is 80 and the
researcher plans to use a 90% level of confidence. The sample
size should be at least _______.
86.
M
Calc
A.
B.
C.
D.
A study is going to be conducted in which a population mean will

be estimated using a 92% confidence interval. The estimate
needs to be within 12 of the actual population mean. The
population variance is estimated to be around 2500. The
necessary sample size should be at least _______.
87.
M
Calc
44
62
216
692
A. 15
B. 47
C. 53
230
B
Test Bank
D. 638
88.
In estimating the sample size necessary to estimate P, if there is

no good approximation for the value of P available, the value of
____ should be used as an estimate of P in the formula.
E
Term
A.
B.
C.
D.
D 89.
A researcher wants to estimate the population proportion with a

95% level of confidence. He estimates from previous studies
that the population proportion is no more than .30. The
researcher wants the estimate to have an error of no more than .
03. The necessary sample size is at least _______.
M
Calc
A.
B.
C.
D.

consumer acceptance of a new toothpaste package. She plans
to use a 95% confidence interval estimate of the proportion of
households which prefer the new packages; she will accept a
0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be
at least _______.
90.
0.10
0.50
0.40
1.96
27
188
211
897
M
BCalc
A.
B.
C.
D.

consumer acceptance of a new toothpaste package. She plans
to use a 80% confidence interval estimate of the proportion of
households which prefer the new packages; she will accept a
0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be
at least _______.
91.
M
BCalc
27
59
323
427
A. 27
B. 59
C. 323
D. 427

Populations
231
232 Test Bank

A 92. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of
GFS e-mail for non-business communications. He plans to use a
95% confidence interval estimate of the proportion of e-mail
messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee email is not business related. Elwin should sample _______ e-mail
messages.
12
457
14
E
BApp
A.
B.
C.
D.

GFS e-mail for non-business communications. He plans to use a
98% confidence interval estimate of the proportion of e-mail
messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee email is not business related. Elwin should sample _______ e-mail
messages.
93.
12
457
14
E
BApp
A.
B.
C.
D.
D 94.
A researcher wants to estimate the population proportion with a

90% level of confidence. She estimates from previous studies
that the population proportion is no more than .30. The
researcher wants the estimate to have an error of no more than .
02. The necessary sample size is at least _______.
M
Calc
A.
B.
C.
D.
A study will be conducted to estimate the population proportion.

A level of confidence of 99% will be used and an error of no
more than .04 is desired. There is no knowledge as to what the
population proportion will be. The size of sample should be at
least _______.
95.
M
Calc
29
47
298
1421
A. 1036
B. 160
C. 41
D. 259

Populations
233
D 96.
A researcher conducts a study to determine what the population

proportion is for a given characteristic. It is believed from
previous studies that the proportion of the population will be at
least .65. The researcher wants to use a 98% level of confidence.
He also wants the error to be no more than .03. The sample size
should be at least _______.
M
Calc
A.
B.
C.
D.
You wish to determine the proportion of all secretaries who are

familiar with a particular word processing package. You will
conduct a random survey. How large a sample should you take
if you want to be 95% confident of the results and within 0.05 of
the true population proportion?
97.
41
313
1677
1373
M
Calc
A.
B.
C.
D.
You wish to determine the proportion of all secretaries who are

familiar with a particular word processing package. You will
conduct a random survey. How large a sample should you take
if you want to be 90% confident of the results and within 0.04 of
the true population proportion?
98.
73
384
95
277
M
Calc
A.
B.
C.
D.
A bank officer wishes to estimate the amount of the average

total deposits per customer at the bank. She wishes the
estimate to be within $200 of the actual average with 95%
confidence. She assumes the standard deviation for this should
be $1000. How large should the sample be?
99.
152
216
423
600
A. 10
234 Test Bank

BCalc
B. 96
C. 68
D. 19,208
B 100.
M
BCalc

Populations
235
A bank officer wishes to estimate the amount of the average
total deposits per customer at the bank. She wishes the
estimate to be within $100 of the actual average with 90%
confidence. She assumes the standard deviation for this should
be $800. How large should the sample be?
A.
B.
C.
D.
51
173
246
17,318
236
Test Bank
101. Whileevaluatingtheservicelevelprovidedtowalkincustomers,BrianVanecek,
VPofOperationsatPortlandTrustBank,encounteredresistancetosomeofhis
proposalsfromfellowexecutives.Brianfocusesonprovidingtimely,efficient
servicetothebankscustomers;customershavingtowaitforserviceupsetshim;
andsomecustomerssharehisphilosophy,butnotall.TheVPofMarketing
pointsoutthatsomecustomers(forvariousreasons)"don'twanttorushinand
out."Moreover,thebank'smanagementwantstoprovideawarmfriendly
atmosphereforcustomers.
M
BApp
Identifysomepotentialsegmentsofthebank'swalkincustomers.(Aredrive
throughcustomersadistinctsegment?)Howcanastatisticalanalysisofwalkin
customershelpidentifyandevaluateservicealternativesforthesegments?What
estimatesareneeded?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
102.

Populations
237
Stockton Steel, Inc. can qualify for a lucrative contract to supply
steel rods if it can meet the buyers process capability
requirements. Specifically, the buyer requires documented
evidence that the standard deviation of Stockton's process is no
more than 1/12th of the difference between the upper tolerance
limit and the lower tolerance limit, (UTL - LTL)/12.
Sarah Shum, Director of Quality Programs, is assigned the task
of developing the documentation. She knows that variability of
the rod length depends on several factors: the operators' skill,
the mix used in the steel melt, the quality of materials used in
the mix, and the condition of the equipment.
M
BApp
Discuss Sarah's assignment. What estimates does she need?

Which departments must participate in the process capability
study? Which of these departments will not participate after
completion of the study?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
238
Test Bank
103. Alan Lessoff, VP of Marketing at CyberWarehouse, Inc. (CWI),
wants to learn more about online shoppers that visit the
CyperWarehouse web sites.
IdentifysomepotentialsegmentsoftheCWI'sonlineshoppers.(Arerepeat
visitorsadistinctsegment?)Howcanastatisticalanalysisofonlineshoppers
helpidentifyandevaluateservicealternatives,merchandiseselection,andweb
sitedesignforthesegments?Whatestimatesareneeded?
M
BApp
104.

Populations
239
Online financial brokerages continue go grow with the Internet.
CyberMarkets, Inc. (CMI) advises e-commerce businesses on
their marketing strategies.
Addalie McMinn, VP of Research at CMI, expects increasingly
intense competition between online brokerages for new
customers as the industry matures.
She wants to learn more about the customers of online
brokerages; she wants to understand "what makes them tick" so
she can advise CMI clients how to compete more successfully.
What factors do these investors use to choose one broker over
another? Transaction costs? Basic service characteristics such
as fast order execution, and timely, well-organized statements?
Free tie-in services such as an address book, a calendar service,
and links to favorite web sites for gifts.
Should Addalie segment the customer population? Are all
factors equally important for all market segments? Does age,
gender, or professional occupation matter?
M
BApp
Howcanastatisticalanalysisofonlinebrokeragecustomersassistwithstategy
formulation?Describe the statistical methods that will be useful to
Addalie during the study. Whatestimatesareneeded?

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CHAPTEREIGHT

When a statistic calculated from sample data is used to estimate

When a range of values is used to estimate a population

202 Test Bank

Brian Vanecek, VP of Operations at Portland Trust Bank, is

Eugene Gates, Marketing Director of Mansfield Motors

Chapter 8: Statistical Inference: Estimation for Single

204 Test Bank

Mary Flindt, a Marketing Director with Epsilon Airlines, is

Chapter 8: Statistical Inference: Estimation for Single

206 Test Bank

The Z value associated with a two-sided 90% confidence interval

The Z value associated with a two-sided 95% confidence interval

The Z value associated with a two-sided 80% confidence interval

Chapter 8: Statistical Inference: Estimation for Single

208 Test Bank

The Z value associated with a two-sided 92% confidence interval

The Z value associated with a two-sided 82% confidence interval

Suppose a random sample of 36 is selected from a population

Suppose a random sample of 36 is selected from a population

Chapter 8: Statistical Inference: Estimation for Single

Suppose a random sample of size 64 is selected from a

210 Test Bank

James Desreumaux, VP of Human Resources of American First

James Desreumaux, VP of Human Resources of American First

Chapter 8: Statistical Inference: Estimation for Single

Eugene Gates, Marketing Director of Mansfield Motors

212 Test Bank

Mary Flindt, a Marketing Director with Epsilon Airlines, is

Chapter 8: Statistical Inference: Estimation for Single

214 Test Bank

A random sample of 64 items is selected from a population of

A random sample of 64 items is selected from a population of

Chapter 8: Statistical Inference: Estimation for Single

The normal distribution is used to test about a population mean

The t test was developed by _______.

The t-distribution is similar to a normal distribution. However

The t-distribution is similar to a normal distribution. However

216 Test Bank

If the degrees of freedom in a t distribution get very large,

The table t value associated with the upper 5% of the t

the t values and the Z values are almost the same

The table t value associated with the upper 5% of the t

The table t value associated with the upper 10% of the t

Chapter 8: Statistical Inference: Estimation for Single

The table t value associated with the upper 10% of the t

The table t value associated with the upper 5% of the t

The table t value associated with the upper 0.5% of the t

The table t value associated with 10 degrees of freedom and

218 Test Bank

The table t value associated with 21 degrees of freedom and

The table t value associated with 8 degrees of freedom and used

A researcher is interested in estimating the mean value for a

Chapter 8: Statistical Inference: Estimation for Single

The lengths of steel rods produced by a shearing process are

The weights of aluminum castings produced by a process are

Life tests performed on a sample of 13 batteries of a new model

220 Test Bank

A researcher wants to estimate the proportion of the population

A researcher wants to estimate the proportion of a population

A researcher wants to estimate the proportion of a population

Chapter 8: Statistical Inference: Estimation for Single

A researcher wants to estimate the proportion of a population