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JGI220 - Tutorial 10 - Memorandum - 2024

The document contains a tutorial memorandum discussing statistical concepts related to confidence intervals, sample proportions, and means based on various scenarios involving business travellers and airline services. It includes calculations for standard error, confidence intervals, and interpretations of statistical outputs. Additionally, it addresses the implications of changing confidence coefficients on interval estimates.

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9 views

JGI220 - Tutorial 10 - Memorandum - 2024

The document contains a tutorial memorandum discussing statistical concepts related to confidence intervals, sample proportions, and means based on various scenarios involving business travellers and airline services. It includes calculations for standard error, confidence intervals, and interpretations of statistical outputs. Additionally, it addresses the implications of changing confidence coefficients on interval estimates.

Uploaded by

gratitude
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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JGI220 Tutorial 10 Memorandum 17 October 2024

Questions 1 to 3 are based on the following information:


The proportion of business travellers who is dissatisfied with the service of an airline is investigated. A
manager selects a systematic sample of 50 business travellers, from which 10 said that they are dissatisfied
with the service.

Let: p = population proportion of dissatisfied business travellers

Question 1:
The standard error of the sample proportion 𝑝̅, is:

Answer 1:
𝑝(1−𝑝) (0.2)(0.8)
𝜎𝑝 = √ =√ = 0.0566
𝑛 50

Question 2:
The lower limit of a 95% confidence interval for the population proportion is:

Answer 2:
𝑝(1−𝑝) (0.2)(0.8) 10
𝑝 − 𝑧𝛼/2 √ = 0.2 − (1.96)√ = 0.0891 with 𝑝 = 50 = 0.2.
𝑛 50

Question 3:
If the confidence coefficient of a confidence interval decreases from 0.95 to 0.90 the:

(A) sample size increases. (B) interval is narrower.


(C) significance level is smaller. (D) margin of error is larger.
(E) standard error is larger.

Answer 3:
If the confidence coefficient of a confidence interval decreases from 0.95 to 0.90, the 𝑧𝛼/2 value decreases
from 1.96 to 1.645 and, consequently, the interval is narrower. Answer = B.

Questions 4 to 6 are based on the following information:


A Business travel magazine rates the service of airlines on a regular basis (the rating scale with a low score of
0 and a high score of 10 was used). It is known that 𝜎 = 1.05. An airline was rated by 30 randomly selected
business travellers which provided a sample mean of 7.5.

Question 4:
The standard error of the sample mean 𝑋 is:

Answer 4:
𝜎 1.05
𝜎𝑋 = 𝑛 = = 0.1917
√ √30

Question 5:
The upper limit of a 99% confidence interval for the population mean is:

Answer 5:
𝜎 1.05
𝑥 + 𝑧𝛼/2 𝑛 = 7.5 + (2.576) = 7.9938
√ √30
Question 6:
There is a 0.95 probability that the sample mean, 𝑋, will provide a sampling error of ______ or less.

Answer 6:

|𝑥 − 𝜇| ≤ 𝑧𝛼 𝜎⁄ where 𝑧𝛼 𝜎⁄ = (1.96)(0.1917) = 0.3757


2 √𝑛 2 √𝑛

Questions 7 to 9 are based on the following information:


Consider the following Excel output on the training time in days for a sample of 20 Scheer industries
employees.
Formula worksheet Value worksheet

Note: Rows 14 – 21 are hidden

Question 7:
When 𝑠 is used to estimate 𝜎, the interval estimate for the population mean is based on the ___________
distribution.

Answer 7:
t-distribution

Question 8:
The point estimate of the population mean is:

Answer 8:
SUM(A2:A21) 1030
= = 51.5
COUNT(A2:A21) 20

Question 9:
The margin of error of a 95% confidence interval for the population mean is:

Answer 9:
𝑠 6.8403
𝑡𝛼/2 𝑛 = (2.0930) ( ) = 3.2013
√ √20
Questions 10 to 13 are based on the following information:
FUN City has a monthly newsletter which publishes important events, news and competitions. To justify the
time and effort to publish the newsletter, a certain percentage of the regular visitors has to read the newsletter.
In a random sample of 40 regular visitors it is found that 27 read the newsletter regularly.

𝑝 = the population proportion of regular visitors that reads the newsletter.

Question 10:
A 90% confidence interval for 𝑝 means:

(A) if 100 random samples are drawn, then 𝑝 will fall inside 10 of the confidence intervals.
(B) the sampling error is 10% of the population proportion.
(C) the confidence coefficient is 10%.
(D) the probability is 90% that the sample proportion will fall inside the confidence interval.
(E) if 100 random samples are drawn, then 𝑝 can be expected to fall inside 90 of the confidence intervals.

Answer 10:
Theory. Answer = E.

Question 11:
For a 90% confidence interval the probability is 0.90 that the sampling error is less than or equal to:

Answer 11:
27
𝑝 = 40 = 0.675

𝑝(1−𝑝) (0.675)(0.325)
𝑧𝛼/2 √ = (1.645)√ = 0.1218
𝑛 40

Question 12:
The upper limit of a 99% confidence interval for 𝑝 is:

Answer 12:
𝑝(1−𝑝) (0.675)(0.325)
𝑝 + 𝑧𝛼/2 √ = 0.675 + (2.576)√ = 0.8658
𝑛 40

Question 13:
If the confidence coefficient of a confidence interval for 𝑝 is increased from 90% to 99%, then:

(A) the standard error decreases, which implies a narrower interval


(B) the standard error increases, which implies a wider interval
(C) the sample size increases, which implies a narrower interval
(D) lower limit increases, which implies a wider interval
(E) the margin or error increases, which implies a wider interval

Answer 13:
Answer = E, see the table below
𝜶
Confidence Level Confidence coefficient 𝜶 𝒛𝜶 Margin of Error
𝟐 𝟐

90% 0.90 0.10 0.05 1.645 1.645𝜎𝑋


99% 0.99 0.01 0.005 2.576 2.576𝜎𝑋

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