No.17Chapter 8. This file "Miami" is in DECSCI2chap8.

xls
The International Air Transport Association surveys a business traveler to develop quality ratings 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 the Miami International Airport. The ratings obtained from
the sample of 50 business travelers are shown. Develop a 95% confidence interval estimate of the population mean
rating for Miami.

















Conf|dence Interva| Lst|mate for the Mean

Data
Samp|e Standard Dev|at|on 2.1628S903
Samp|e Mean 6.34
Samp|e S|ze S0
Conf|dence Leve| 9S

lnLermedlaLe CalculaLlons
SLandard Lrror of Lhe Mean 0.303874437
uegrees of lreedom 49
! value 2.0096
lnLerval Palf WldLh 0.6147

Conf|dence Interva|
Interva| Lower L|m|t S.73
Interva| Upper L|m|t 6.9S
Given: n=50 (CLT ok) (1-!) = 0.95 ! = 0.05
!
2
= 0.025 x= 6.34 !
0.025
=1.96 S= 2.16285903
Solution: 6.34"1.96
2.16285903
50
# # 6.34+1.96
2.16285903
50
Answer: A 95% confidence interval for population mean () is 4.07 # # 8.61
No. 21 Chapter 8. This file "Alcohol" is in DECSCI2chap8.xls
Consumption of alcoholic beverages by young women of drinking age has been increasing in the United Kingdom,
the United States, and Europe (The Walla Street Journal, Febuary 15, 2006). Data (annual consumption in liters)
consistent with the findings reported in The Wall Street Journal article are shown for a sample of 20 European
young women. Assuming the population is roughly symmetric; construct a 95% confidence interval for the mean
annual consumption of alcoholic beverages by European young women.




Conf|dence Interva| Lst|mate for the Mean

Data
Samp|e Standard Dev|at|on 6S.3911909
Samp|e Mean 130
Samp|e S|ze 20
Conf|dence Leve| 9S

lnLermedlaLe CalculaLlons
SLandard Lrror of Lhe Mean 14.6219148
uegrees of lreedom 19
! value 2.0930
lnLerval Palf WldLh 30.6040

Conf|dence Interva|
Interva| Lower L|m|t 99.40
Interva| Upper L|m|t 160.60




Given: n=20 (1-!)= 0.95 != 0.05
!
2
= 0.025 ! = 2.093 x=130 s = 65.3911309
Solution: 130-2.093
65.3911309
20
" " 130+2.093
65.3911309
20
Answer: A 95% confidence interval for population mean () is 99.40 " "160.60
No. 29 Chapter 8. Read the textbook to see the entire problem.
The travel-to-work time for residents of the 15 largest cities in the United States is reported in the 2003 Information
Please Almanac. Suppose that a preliminary simple random sample of residents of San Francisco is used to develop
a planning value of 6.25 minutes for the population standard deviation.
a. If we want to estimate the population mean travel-to-work time for San Francisco residents with a margin
of error of 2 minutes, what sample size should be used? Assume 95% confidence.



Samp|e S|ze Determ|nat|on


Data
opu|at|on Standard Dev|at|on 6.2S
Samp||ng Lrror 2
Conf|dence Leve| 9S

lnLemedlaLe CalculaLlons
Z value -1.9600
CalculaLed Sample Slze 37.3142

8esulL
Samp|e S|ze Needed 38

b. If we want to estimate the population mean travel-to work- time for San Francisco residents with a margin
of error of 1 minute, what sample size should be used? Assume 95% confidence.





Given: ! = 6.25min e = 2min (1-") = 0.95 " = 0.05 !
0.025
=1.96
Solution: n =
(1.96)
2
(6.25)
2
2
2
Answer: n = 37.52
Given: ! = 6.25 e = 1 (1-") = 0.95 " = 0.05 !
0.025
=1.96
Solution: n =
(1.96)
2
(6.25)
2
1
2
Answer: n = 150.06









No. 37 Chapter 8. This file "JobSatisfaction" is in DECSCI2chap8.xls
Towers Perrin, a New York human resources consulting firm conducted a survey of 1100 employees at medium-
sized and large companies to determine how dissatisfied employees were with their jobs. The data are shown here. A
response of Yes indicates that the employee strongly dislikes the current work experience.
(a) What is a point estimate of the proportion of the population of employees who strongly dislike the current
work experience?











Samp|e S|ze Determ|nat|on


Data
opu|at|on Standard Dev|at|on 6.2S
Samp||ng Lrror 1
Conf|dence Leve| 9S

lnLemedlaLe CalculaLlons
Z value -1.9600
CalculaLed Sample Slze 130.0370

8esulL
Samp|e S|ze Needed 1S1
Given: y = 550 n = 1100
Solution: ! =
550
1100
The point estimate of the population proportion of emloyees
who strongly dislike the current work experience is ! = 0.5


(b) At 95% confidence, what is the margin of error?





(c) What is the 95% confidence interval for the proportion of the population of employees who strongly dislike
the current work experience?

















Conf|dence Interva| Lst|mate for the roport|on

Data
Samp|e S|ze 1100
Number of Successes SS0
Conf|dence Leve| 9S

lnLermedlaLe CalculaLlons
Sample roporLlon 0.3
Z value -1.9600
SLandard Lrror of Lhe roporLlon 0.0131
lnLerval Palf WldLh 0.0293

Conf|dence Interva|
Interva| Lower L|m|t 0.470S
Interva| Upper L|m|t 0.S29S
Given: ! = 0.5 Z
0.025
=1.96 n=1100
Solution: e = 1.96
0.5(1!0.5)
1100
Answer: the margin of error of a 95% confidence interval for
a population proportion is e=0.030
Given: ! = 0.5 n = 1100 (1-") = 0.95 !
0.025
=1.96
Solution: 0.5"1.96
0.5 (1- 0.5)
1100
# ! # 0.5+1.96
0.5 (1- 0.5)
1100
Answer: A 95% confidence interval of a population of point estimator is
0.47 # ! # 0.53
No. 58 Chapter 8. Read the textbook to see the entire problem.
A well known bank credit card firm wishes to estimate the proportion of credit card holders who carry a nonzero
balance at the end of the month and incur an interest charge. Assume that the desired margin of error is 0.03 at 98%
confidence.
a. How large a sample should be selected if it is anticipated that roughly 70% of the firms cardholders carry a
nonzero balance at the end of the month?


















Samp|e S|ze Determ|nat|on


Data
Lst|mate of 1rue roport|on 0.7
Samp||ng Lrror 0.03
Conf|dence Leve| 98

lnLermedlaLe CalculaLlons
Z value -2.3263
CalculaLed Sample Slze 1262.7734

kesu|t
Samp|e S|ze Needed 1263
Given: e = 0.03 (1-!) = 0.98 ! = 0.02 !
0.01
= 2.33 " = 0.70
Solution: n =
(2.33)
2
(0.70)(1"0.70)
(0.03)
2
Answer: The sample size selected should be n = 1267 if it is anticipated
that roughly 70% of the firm's cardholders carry a nonzero balance
at the end of the month

b. How large a sample should be selected if no planning value for the proportion could be specified?




No. 21 Chapter 9. This file "Fowle" is in DECSCI2chap9.xls. Read the textbook to see the entire
problem. Don't forget to follow the 8-step procedure.
Fowle Marketing Researching Inc. Bases charges to a client on the assumption that telephone surveys can be
completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is
charged. A sample of 35 surveys provided the survey time shown in the CD file named Fowle. Based upon past
studies, the population standard deviation is assumed known with ! ! # $%&'()*+ ,* (-) ./)$%'$ /0() 1'*(%2%)*3
a. Formulate the null and alternative hypothesis for this application







b. Compute the value of the test statistic.





Given: e = 0.03 (1-!) = 0.98 ! = 0.02 !
0.01
= 2.33
Solution: n =
2.33
2
4e
2
Answer: The sample size selected should be n = 1509 if no planning
value for the proportion could be specified.
Level of Significance: ! = 0.01 Z
0.01
= 2.325
Test Statistics: Z =
x !
o
"
n
Decision Rule & Critical Region: reject Ho if Z > 2.325
This is a problem about mean = completion of telephone survey
in minutes
Ho: !15 minutes (Status quo: the telephone survey can be
completed within the alloted time or less)
Ha: >15 minutes (Burden of proof: the telephone survey is
longer than the time necessary thus
premium rate should be charged)
This is an upper - tailed test

c. What is the ! 4506')3

d. 7( ! ! 8+89: ;-0( %* <='/ >=&>6'*%=&3














No. 29 Chapter 9. This file "Diamonds" is in DECSCI2chap9.xls. Don't forget to follow the 8-
step procedure.
2 1est of nypothes|s for the Mean


Data
Nu|| nypothes|s = 1S
Leve| of S|gn|f|cance 0.01
opu|at|on Standard Dev|at|on 4
Samp|e S|ze 3S
Samp|e Mean 17

lnLermedlaLe CalculaLlons
SLandard Lrror of Lhe Mean 0.6761
! 1est Stat|st|c 2.9S80
Upper-1a|| 1est
Upper Cr|t|ca| Va|ue 2.3263
"-Va|ue 0.001S
ke[ect the nu|| hypothes|s
Computation: Z =
17!15
4
35
Z = 2.96
Conclusion: We have sufficient evidence to reject Ho.
Decision: Permium rate should be charged.
! !value is !(">z) thus ! =1!2.325 ! = -1.325
The cost of a one-carat VS2 clarity, H color diamond from Diamond Source USA is $5600. A Midwestern jeweler
makes calls to contacts in the diamond district of New York City to see whether the mean price of diamonds there
differs from $5600.
(a) Formulate hypotheses that can be used to determine whether the mean price in New York City differs from
$5600.








(b) A sample of 25 New York City contacts provided the prices shown in this worksheet. What is the p-value?

(c) At a level of significance of 0.05, can the null hypothesis be rejected? What is your conclusion?







t
0.025
= !2.064 t
0.025
= 2.064
This is a problem about mean = amount of one-carat VS2 clarity,
H color diamond in dollars.
Ho: = $5600 (Status quo: The diamon cost in Diamond Source USA
is the same cost as the one in the diamond district in
New York City)
Ha: ! $5600 (Burden of proof: The diamon cost in Diamond Source
USA is the same cost as the one in the diamond district
in New York City)
This is a two- tailed test
Level of Significance: ! = 0.05 t
0.025
= 2.064
Test Statistics: t =
x !
o
s
n
Decision Rule & Critical Region: reject Ho if t > 2.064 or t < -2.064
! !value is !(" # z) thus ! = 2[1!| 2.325|] or ! = 2.65























t 1est for the nypothes|s of the Mean

Data
Nu|| nypothes|s = 120
Leve| of S|gn|f|cance 0.0S
Samp|e S|ze 2S
Samp|e Mean S83S
Samp|e Standard Dev|at|on S20.1142

lnLermedlaLe CalculaLlons
SLandard Lrror of Lhe Mean 104.0228
uegrees of lreedom 24
$ 1est Stat|st|c S4.9399

1wo-1a|| 1est
Lower Cr|t|ca| Va|ue -2.0639
Upper Cr|t|ca| Va|ue 2.0639
"-Va|ue 0.0000
ke[ect the nu|| hypothes|s

Lower-1a|| 1est
Lower Cr|t|ca| Va|ue -1.7109
"-Va|ue 1.0000
Do not re[ect the nu|| hypothes|s

Upper-1a|| 1est
Upper Cr|t|ca| Va|ue 1.7109
"-Va|ue 0.0000
ke[ect the nu|| hypothes|s
Computation: t =
5835!5600
520.1142
25
t = 2.26
Conclusion: We have sufficient evidence to reject Ho.
Decision: The diamond cost in Diamond Source
is not the sam cost as the one in the diamond
district of New York City.
No. 55 Chapter 9. Read the textbook to see the entire problem. Don't forget to follow the 8-step
procedure.
An airline promotion to business travelers is based on the assumption that two-thirds of business travelers use a
laptop computer on overnight business trips.
a. State the hypotheses that can be used to test this assumption








b. What is the sample proportion from an American Express sponsored survey that found 355 of 546 business
travelers use a laptop computer on overnight business trips?



c. What is the p-value?



d. Use ! !8+89+ ?-0( %* <='/ -<.=(-)*%*4()*(%&@ >=&>6'*%=&3





The sample proportion is ! =
355
546
, thus ! = 0.65
This is a problem about proportion ! = overnight business travelers that use
laptops
Ho: ! =
364
546
(Status quo: overnight business travelers use laptops)
Ha: ! !
364
546
(Burden of proof: overnight business travelers do not
use laptops)
This is a two- tailed test
Level of Significance: ! = 0.01 !
0.005
= 2.575
Test Statistics: Z =
" " "
o
"
o
(1" "
o
)
n
Decision Rule & Critical Region: reject Ho if Z > 2.575 or Z < -2.575
! !value is !(" # z) thus ! = 2[1!| !0.83|] or ! = 0.34




!
0.005
= "2.575 !
0.005
= 2.575























2 1est of nypothes|s for the roport|on

Data
Nu|| nypothes|s ! = 0.6667
Leve| of S|gn|f|cance 0.01
Number of Items of Interest 2
Samp|e S|ze S46
lnLermedlaLe CalculaLlons
Sample roporLlon 0.003663004
SLandard Lrror 0.0202
2 1est Stat|st|c -32.8639
1wo-1a|| 1est
Lower Cr|t|ca| Va|ue -2.S7S8
Upper Cr|t|ca| Va|ue 2.S7S8
"-Va|ue 0.0000
ke[ect the nu|| hypothes|s
Computation: Z =
0.65!
2
3
2
3
(1!
2
3
)
546
" = -0.83
Conclusion: We have sufficient evidence to reject Ho.
Decision: Overnight business travelers do not use laptops.







DECSCI2 Homework
K37
Maria Samantha R. Abalos
11211806
June 26, 2013