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STA 2023 EXAM-3
Practice Problems
Mudunuru, Venkateswara Rao
STA 2023
Spring 2016
From Chapters 6, 7, & 8 SOLUTIONS
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 1
For z values greater than 3.49, use 1.000 to approximate the area.
Standard Normal z-TABLE: P( Z < z )
z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09
0.0 .5000 .5040 .5080 .5120 .5160 .5199 .5239 .5279 .5319 .5359
0.1 .5398 .5438 .5478 .5517 .5557 .5596 .5636 .5675 .5714 .5753
0.2 .5793 .5832 .5871 .5910 .5948 .5987 .6026 .6064 .6103 .6141
0.3 .6179 .6217 .6255 .6293 .6331 .6368 .6406 .6443 .6480 .6517
0.4 .6554 .6591 .6628 .6664 .6700 .6736 .6772 .6808 .6844 .6879
0.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224
0.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 .7486 .7517 .7549
0.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852
0.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133
0.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389
1.0 .8413 .8438 .8461 .8485 .8508 .8531 .8554 .8577 .8599 .8621
1.1 .8643 .8665 .8686 .8708 .8729 .8749 .8770 .8790 .8810 .8830
1.2 .8849 .8869 .8888 .8907 .8925 .8944 .8962 .8980 .8997 .9015
1.3 .9032 .9049 .9066 .9082 .9099 .9115 .9131 .9147 .9162 .9177
1.4 .9192 .9207 .9222 .9236 .9251 .9265 .9279 .9292 .9306 .9319
1.5 .9332 .9345 .9357 .9370 .9382 .9394 .9406 .9418 .9429 .9441
1.6 .9452 .9463 .9474 .9484 .9495 .9505 .9515 .9525 .9535 .9545
1.7 .9554 .9564 .9573 .9582 .9591 .9599 .9608 .9616 .9625 .9633
1.8 .9641 .9649 .9656 .9664 .9671 .9678 .9686 .9693 .9699 .9706
1.9 .9713 .9719 .9726 .9732 .9738 .9744 .9750 .9756 .9761 .9767
2.0 .9772 .9778 .9783 .9788 .9793 .9798 .9803 .9808 .9812 .9817
2.1 .9821 .9826 .9830 .9834 .9838 .9842 .9846 .9850 .9854 .9857
2.2 .9861 .9864 .9868 .9871 .9875 .9878 .9881 .9884 .9887 .9890
2.3 .9893 .9896 .9898 .9901 .9904 .9906 .9909 .9911 .9913 .9916
2.4 .9918 .9920 .9922 .9925 .9927 .9929 .9931 .9932 .9934 .9936
2.5 .9938 .9940 .9941 .9943 .9945 .9946 .9948 .9949 .9951 .9952
2.6 .9953 .9955 .9956 .9957 .9959 .9960 .9961 .9962 .9963 .9964
2.7 .9965 .9966 .9967 .9968 .9969 .9970 .9971 .9972 .9973 .9974
2.8 .9974 .9975 .9976 .9977 .9977 .9978 .9979 .9979 .9980 .9981
2.9 .9981 .9982 .9982 .9983 .9984 .9984 .9985 .9985 .9986 .9986
3.0 .9987 .9987 .9987 .9988 .9988 .9989 .9989 .9989 .9990 .9990
3.1 .9990 .9991 .9991 .9991 .9992 .9992 .9992 .9992 .9993 .9993
3.2 .9993 .9993 .9994 .9994 .9994 .9994 .9994 .9995 .9995 .9995
3.3 .9995 .9995 .9995 .9996 .9996 .9996 .9996 .9996 .9996 .9997
3.4 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9998
Level of Significance α= 0.05 α= 0.01 α= 0.1
Critical Value for
a left-tailed test -1.645 -2.33 -1.28
a right-tailed test 1.645 2.33 1.28
a two tailed test ±1.96 ±2.58 ±1.645
Level of Confidence c Critical Value Zc
0.80 or 80% 1.28
0.90 or 90% 1.645
0.95 or 95% 1.96
0.99 or 99% 2.58
(b) Confidence Interval z-Critical
values
(c) Hypothesis testing z-Critical
values
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 2
Student t-distribution Table
One-tail
area 0.250 0.125 0.100 0.075 0.050 0.025 0.010 0.005 0.0005
Two-tail
area 0.500 0.250 0.20 0.150 0.100 0.050 0.020 0.010 0.0010
d.f./c 0.500 0.750 0.800 0.850 0.900 0.950 0.980 0.990 0.999
1 1.000 2.414 3.078 4.165 6.314 12.706 31.821 63.657 636.619
2 0.816 1.604 1.886 2.282 2.920 4.303 6.965 9.925 31.599
3 0.765 1.423 1.638 1.924 2.353 3.182 4.541 5.841 12.924
4 0.741 1.344 1.533 1.778 2.132 2.776 3.747 4.604 8.610
5 0.727 1.301 1.476 1.699 2.015 2.571 3.365 4.032 6.869
6 0.718 1.273 1.440 1.650 1.943 2.447 3.143 3.707 5.959
7 0.711 1.254 1.415 1.617 1.895 2.365 2.998 3.499 5.408
8 0.706 1.240 1.397 1.592 1.860 2.306 2.896 3.355 5.041
9 0.703 1.230 1.383 1.574 1.833 2.262 2.821 3.250 4.781
10 0.700 1.221 1.372 1.559 1.812 2.228 2.764 3.169 4.587
11 0.697 1.214 1.363 1.548 1.796 2.201 2.718 3.106 4.437
12 0.695 1.209 1.356 1.538 1.782 2.179 2.681 3.055 4.318
13 0.694 1.204 1.350 1.530 1.771 2.160 2.650 3.012 4.221
14 0.692 1.200 1.345 1.523 1.761 2.145 2.624 2.977 4.140
15 0.691 1.197 1.341 1.517 1.753 2.131 2.602 2.947 4.073
16 0.690 1.194 1.337 1.512 1.746 2.120 2.583 2.921 4.015
17 0.689 1.191 1.333 1.508 1.740 2.110 2.567 2.898 3.965
18 0.688 1.189 1.330 1.504 1.734 2.101 2.552 2.878 3.922
19 0.688 1.187 1.328 1.500 1.729 2.093 2.539 2.861 3.883
20 0.687 1.185 1.325 1.497 1.725 2.086 2.528 2.845 3.850
21 0.686 1.183 1.323 1.494 1.721 2.080 2.518 2.831 3.819
22 0.686 1.182 1.321 1.492 1.717 2.074 2.508 2.819 3.792
23 0.685 1.180 1.319 1.489 1.714 2.069 2.500 2.807 3.768
24 0.685 1.179 1.318 1.487 1.711 2.064 2.492 2.797 3.745
25 0.684 1.198 1.316 1.485 1.708 2.060 2.485 2.787 3.725
26 0.684 1.177 1.315 1.483 1.706 2.056 2.479 2.779 3.707
27 0.684 1.176 1.314 1.482 1.703 2.052 2.473 2.771 3.690
28 0.683 1.175 1.313 1.480 1.701 2.048 2.467 2.763 3.674
29 0.683 1.174 1.311 1.479 1.699 2.045 2.462 2.756 3.659
30 0.683 1.173 1.310 1.477 1.697 2.042 2.457 2.750 3.646
35 0.682 1.170 1.306 1.472 1.690 2.030 2.438 2.724 3.591
40 0.681 1.167 1.303 1.468 1.684 2.021 2.423 2.704 3.551
45 0.680 1.165 1.301 1.465 1.679 2.014 2.412 2.690 3.520
50 0.679 1.164 1.299 1.462 1.676 2.009 2.403 2.678 3.496
60 0.679 1.162 1.296 1.458 1.671 2.000 2.390 2.660 3.460
70 0.678 1.160 1.294 1.456 1.667 1.994 2.381 2.648 3.435
80 0.678 1.159 1.292 1.453 1.664 1.990 2.374 2.639 3.416
100 0.677 1.157 1.290 1.451 1.660 1.984 2.364 2.626 3.390
500 0.675 1.152 1.283 1.442 1.648 1.965 2.334 2.586 3.310
1000 0.675 1.151 1.282 1.441 1.646 2.962 2.330 2.581 3.300
0.674 1.150 1.282 1.440 1.645 1.960 2.326 2.576 3.291 © Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 3
1. Scores on exam-1 for statistics score are normally distributed with mean 70 and
standard deviation 1.5.
a. What is the probability that a student selected at random has a score
below 72 on this exam? [Ans: 0.9082]
𝑷 ( 𝒙 < 𝟕𝟐 ) = 𝑃 ( 𝑥 − 𝜇
𝜎≤ 72 − 70
1.5) = 𝑃( 𝑍 ≤ 1.33 ) = 𝟎. 𝟗𝟎𝟖𝟐
b. What is the probability that a student selected at random has a score
above 60 on this exam? [Ans: 1 ]
𝑷 ( 𝒙 > 𝟔𝟎 ) = 𝑃 ( 𝑥 − 𝜇
𝜎≤ 60 − 70
1.5) = 𝑃( 𝑍 ≤ −6.67 ) = 𝑃(𝑧 < 6.67) = 𝟏
c. What is the probability that a student selected at random has a
score between 65 and 72 on this exam? [Ans: 0.9078]
𝑷 ( 𝟔𝟓 < 𝒙 < 𝟕𝟐 ) = 𝑃 (65− 70
1.5< 𝑥 − 𝜇
𝜎<72 − 70
1.5)
= 𝑃(−3.33 < 𝑍 < 1.33 ) = 𝑃(𝑧 < 1.33)−𝑃(𝑧 < −3.33)
= 𝑃(𝑧 < 1.33) − [1 − 𝑃(𝑧 < 3.33)]
= 0.9082 − [1 − 0.9996] = 0.9082 − 0.0004 = 𝟎. 𝟗𝟎𝟕𝟖
d. What is the probability that a student selected at random has a
score between 55 and 67 on this exam? [Ans: 0.0228]
𝑷 ( 𝟓𝟓 < 𝒙 < 𝟔𝟕 ) = 𝑃 (55− 70
1.5< 𝑥 − 𝜇
𝜎<67 − 70
1.5)
= 𝑃(−10 < 𝑍 < −2 ) = 𝑃(𝑧 < −2)−𝑃(𝑧 < −10)
= [1 − 𝑃(𝑧 < 2)] − [1 − 𝑃(𝑧 < 10)]
= [1 − 0.9772] − [1 − 1] = 0.0228 − 0 = 𝟎. 𝟎𝟐𝟐𝟖
e. What score separates the lowest 4.95% of observations of the distribution?
[Ans: 67.53]
𝑷(𝒙 < 𝒂) = 𝟎. 𝟎𝟒𝟗𝟓 ⟹ 𝑷(𝒙 > 𝒂) = 𝟎. 𝟗𝟓𝟎𝟓 ⟹ 𝑃 ( 𝑧 > 𝑎 − 70
1.5) = 0.9505;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 > −1.65 ) = 0.9505
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 70
1.5= −1.65 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟕𝟎 − (𝟏. 𝟓 × 𝟏. 𝟔𝟓) = 𝟔𝟕. 𝟓𝟑 © Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 4
f. What score separates the highest 10% of observations of the distribution?
[Ans: 71.92]
𝑷(𝒙 > 𝒂) = 𝟎. 𝟏𝟎 ⟹ 𝑷(𝒙 < 𝒂) = 𝟎. 𝟗 ⟹ 𝑃 ( 𝑧 < 𝑎 − 70
1.5) = 0.9;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 < 1.28 ) = 0.9
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 70
1.5= 1.28 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟕𝟎 + (𝟏. 𝟓 × 𝟏. 𝟐𝟖)
= 𝟕𝟏. 𝟗𝟐
g. Find ‘a’ such that P(x > a) = 0.7357 [Ans:69.06 ]
𝑷(𝒙 > 𝒂) = 𝟎. 𝟕𝟑𝟓𝟕 ⟹ 𝑃 ( 𝑧 > 𝑎 − 70
1.5) = 0.7357;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 > −0.63 ) = 0.7357
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 70
1.5= −0.63 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟕𝟎 − (𝟏. 𝟓 × 𝟎. 𝟔𝟑)
= 𝟔𝟗. 𝟎𝟔
2. Given that the POPULATION MEAN is 90 and the STANDARDDEVIATION is 8 on a
continuous NORMALLY DISTRIBUTED scale. Find the following:
(a) 𝑃( 𝑥 < 94) [Ans: 0.6915]
𝑷 ( 𝒙 < 𝟗𝟒 ) = 𝑃 ( 𝑥 − 𝜇
𝜎≤ 94 − 90
8) = 𝑃( 𝑧 ≤ 0.5 ) = 𝟎. 𝟔𝟗𝟏𝟓
(b) 𝑃(𝑥 > 86) [Ans: 0.6915]
𝑷 ( 𝒙 > 𝟖𝟔 ) = 𝑃 ( 𝑥 − 𝜇
𝜎> 86 − 90
8) = 𝑃( 𝑧 > −0.5 ) = 𝑃(𝑧 < 0.5) = 𝟎. 𝟔𝟗𝟏𝟓
(c) 𝑃(82 < 𝑥 < 94) [Ans: 0.5328]
𝑷 ( 𝟖𝟐 < 𝒙 < 𝟗𝟒 ) = 𝑃 (82 − 90
8< 𝑥 − 𝜇
𝜎<94 − 90
8)
= 𝑃(−1 < 𝑧 < 0.5 ) = 𝑃(𝑧 < 0.5)−𝑃(𝑧 < −1)
= 0.6915 − [1 − 𝑃(𝑧 < 1)] = 0.6915 − [1 − 0.8413] = 0.6915 − 0.1587 = 𝟎. 𝟓𝟑𝟐𝟖
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 5
(d) 𝑃(80 < 𝑥 < 90) [Ans: 0.3944]
𝑷 ( 𝟖𝟎 < 𝒙 < 𝟗𝟎 ) = 𝑃 (80 − 90
8< 𝑥 − 𝜇
𝜎<90 − 90
8)
= 𝑃(−1.25 < 𝑧 < 0 ) = 𝑃(𝑧 < 0)−𝑃(𝑧 < −1.25)
= 0.5 − [1 − 𝑃(𝑧 < 1.25)] = 0.5 − [1 − 0.8944] = 0.5 − 0.1056 = 𝟎. 𝟑𝟗𝟒𝟒
(e) 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎 𝑠𝑢𝑐ℎ 𝑡ℎ𝑎𝑡 𝑃(𝑥 < 𝑎) = 0.9656 [Ans: 104.56]
𝑷(𝒙 < 𝒂) = 𝟎. 𝟗𝟔𝟓𝟔 ⟹ 𝑃 ( 𝑧 < 𝑎 − 90
8) = 0.9656;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 < 1.82 ) = 0.9656
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 90
8= 1.82 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎,
𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟗𝟎 + (𝟖 × 𝟏. 𝟖𝟐) = 𝟏𝟎𝟒. 𝟓𝟔
(f) 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎 𝑠𝑢𝑐ℎ 𝑡ℎ𝑎𝑡 𝑃(𝑥 > 𝑎) = 0.9418 [Ans: 77.44]
𝑷(𝒙 > 𝒂) = 𝟎. 𝟗𝟒𝟏𝟖 ⟹ 𝑃 ( 𝑧 > 𝑎 − 90
8) = 0.9418;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 > −1.57 ) = 0.9418
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 90
8= −1.57 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎,
𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟗𝟎 − (𝟖 × 𝟏. 𝟖𝟐) = 𝟕𝟓. 𝟒𝟒
3. Suppose 150 people are repeatedly sampled from a population in which the
standard deviation is 35. Find the standard error? [Ans: 2.858]
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐸𝑟𝑟𝑜𝑟, 𝑆. 𝐸. = 𝜎
√𝑛=
35
√150= 2.858
4. Suppose a standard deviation for raw scores is 14 and the sample size is 49. What is
the standard error? [Ans: 2]
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐸𝑟𝑟𝑜𝑟, 𝑆. 𝐸. = 𝜎
√𝑛=14
√49= 2
5. Suppose a population mean is 26 and the standard error is 0.5 based on 200
samples. What is the probability that the sample mean is above 26? [Ans:0.5]
𝑈𝑠𝑖𝑛𝑔 𝑧 = �̅� − 𝜇𝜎√𝑛⁄
𝑎𝑛𝑑 𝑡ℎ𝑒 𝑆. 𝐸. , 𝜎√𝑛⁄ = 0.5,𝑤𝑒 𝑔𝑒𝑡
𝑷(�̅� > 𝟐𝟔) = 𝑃 ( 𝑧 > 26 − 26
0.5) = 𝑃( 𝑧 > 0) = 1 − 𝑃(𝑧 < 0) = 1 − 0.5 = 0.5
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 6
6. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. What is the probability that a random variable is between 63 and 78?
[Ans: 0.3037]
𝑷 ( 𝟔𝟑 < 𝒙 < 𝟕𝟖 ) = 𝑃 (63 − 80
16< 𝑥 − 𝜇
𝜎<78 − 80
16) = 𝑃(−1.06 < 𝑧 < −0.13 )
= 𝑃(𝑧 < −0.13) − 𝑃(𝑧 < −1.06) = [1 − 𝑃(𝑧 < 0.13)] − [1 − 𝑃(𝑧 < 1.06)]
= [1 − 0.5517] − [1 − 0.8554] = 0.4483 − 0.1446 = 𝟎. 𝟑𝟎𝟑𝟕
7. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. What is the probability that a random variable is between 74 and 97?
[Ans: 0.5034]
𝑷 ( 𝟕𝟒 < 𝒙 < 𝟗𝟕 ) = 𝑃 (74 − 80
16< 𝑥 − 𝜇
𝜎<97 − 80
16)
= 𝑃(−0.38 < 𝑍 < 1.06 ) = 𝑃(𝑧 < 1.06)−𝑃(𝑧 < −0.38) = [𝑃(𝑧 < 1.06)]− [1 − 𝑃(𝑧 < 0.38)]
= 0.8554 − [1 − 0.6480] = 𝟎. 𝟓𝟎𝟑𝟒
8. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. Find ‘a’ such that P(x>a) = 0.8888 [Ans: 60.48]
𝑷(𝒙 > 𝒂) = 𝟎. 𝟖𝟖𝟖𝟖 ⟹ 𝑃 ( 𝑧 > 𝑎 − 80
16) = 0.8888;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 > −1.22 ) = 0.8888
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 80
16= −1.22 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟖𝟎 − (𝟏𝟔 × 𝟏. 𝟐𝟐) = 𝟔𝟎. 𝟒𝟖
9. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. Find ‘a’ such that P(x<a) = 0.9505 [Ans: 106.4]
𝑷(𝒙 < 𝒂) = 𝟎. 𝟗𝟓𝟎𝟓 ⟹ 𝑃 ( 𝑧 < 𝑎 − 80
16) = 0.9505;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 < 1.65 ) = 0.9505
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 80
16= 1.65 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟖𝟎 + (𝟏𝟔 × 𝟏. 𝟔𝟓) = 𝟏𝟎𝟔. 𝟒 © Ven M
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© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 7
10. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. Find ‘a’ such that P(x>a) = 0.9 [Ans: 59.52]
𝑷(𝒙 > 𝒂) = 𝟎. 𝟗 ⟹ 𝑃 ( 𝑧 > 𝑎 − 80
16) = 0.9;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 > −1.28 ) = 0.9
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 80
16= −1.28 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟖𝟎 − (𝟏𝟔 × 𝟏. 𝟐𝟖) = 𝟓𝟗. 𝟓𝟐
11. Suppose the random variable X is normally distributed with mean 80 and standard
deviation 16. Find ‘a’ such that P(x<a) = 0.975 [Ans: 111.36]
𝑷(𝒙 < 𝒂) = 𝟎. 𝟗𝟕𝟓 ⟹ 𝑃 ( 𝑧 < 𝑎 − 80
16) = 0.975;
𝑁𝑜𝑤 𝑓𝑟𝑜𝑚 𝑧 − 𝑡𝑎𝑏𝑙𝑒, 𝑤𝑒 ℎ𝑎𝑣𝑒 𝑃( 𝑧 < 1.96 ) = 0.975
𝐸𝑞𝑢𝑎𝑡𝑖𝑛𝑔 𝑎 − 80
16= 1.96 𝑎𝑛𝑑 𝑠𝑜𝑙𝑣𝑖𝑛𝑔 𝑓𝑜𝑟 𝑎, 𝑤𝑒 𝑔𝑒𝑡 𝒂 = 𝟖𝟎 + (𝟏𝟔 × 𝟏. 𝟗𝟔) = 𝟏𝟏𝟏. 𝟑𝟔
12. Suppose the population value of the mean is 200, the population standard
deviation is 10. For a sample of size 36, what is the probability that the sample
mean is between 180 and 220? [Ans: 1]
𝑃( �̅� > 120 ) = 𝑃 ( �̅� − 𝜇𝜎√𝑛⁄
> 120 − 100
25√16⁄
) = 𝑃(𝑧 > 3.2)
= 1 − 𝑃(𝑧 < 3.2) = 1 − 0.9993 = 0.0007
13. Suppose the proportion of all college students who have used i-clickers in the last
two semesters is 60%. If a class of 200 students is considered who are using i-clickers,
what is the probability that the proportion of students who have used i-clickers in
the last 2 semesters is at least 56%? [Ans: 0.8749]
𝑃( �̂� ≥ 0.56 ) = 𝑃
(
�̂� − 𝑝
√𝑝𝑞𝑛
≥0.56 − 0.60
√(0.60)(0.40)200 )
= 𝑃(𝑧 ≥ −1.15) = 𝑃(𝑧 ≤ 1.15) = 0.8749
14. According to a study conducted nationwide in the year 2000, 35% of American
households own more than 2 cars. What is the probability that in a random sample
of 60 selected households at most 40% households will own 2 cars? [Ans: 0.7910]
𝑃( �̂� ≤ 0.4 ) = 𝑃
(
�̂� − 𝑝
√𝑝𝑞𝑛
≤0.4 − 0.35
√(0.35)(0.65)60 )
= 𝑃(𝑧 ≤ 0.81) = 0.791 © Ven M
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© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 8
15. The daily wages of a person in the United States is normally distributed with a mean
of $100 and standard deviation of $25. If a random sample of 16 people were
surveyed, what is the probability that their average daily wages are greater than
$120? [Ans:0.0007]
𝑃( �̅� > 120 ) = 𝑃 ( �̅� − 𝜇𝜎√𝑛⁄
> 120 − 100
25√16⁄
) = 𝑃(𝑧 > 3.2)
= 1 − 𝑃(𝑧 < 3.2) = 1 − 0.9993 = 0.0007
16. Assume that flight durations from London to JFK can be described as a normal
model with mean time of 16 hours and standard deviation of 1.5 hours. Suppose a
certain airways is currently providing new service in this route with 10 new flights.
What’s the probability that the mean flight duration of these flights will be more
than 17.3 hours? [Ans: 0.0031]
𝑃( �̅� > 17.3 ) = 𝑃 ( �̅� − 𝜇𝜎√𝑛⁄
> 17.3 − 16
1.5√10⁄
) = 𝑃(𝑧 > 2.74)
= 1 − 𝑃(𝑧 < 2.74) = 1 − 0.9969 = 0.0031
17. Sixty wind speed readings gave an average speed of 1105 cm/sec. From long term
experience, it can be assumed that the standard deviation is 240 cm/sec. Find and
interpret a 90% confidence interval for the parameter of interest. [Ans: (1054.03,
1155.97)]
𝐺𝑖𝑣𝑒𝑛: 𝑛 = 60; 𝑚𝑒𝑎𝑛, �̅� = 1105 ⇒ 𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑃𝑎𝑟𝑎𝑚𝑒𝑡𝑒𝑟 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑖𝑠 𝜇
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛, 𝜎 = 240,⇒ 𝜎 − 𝑘𝑛𝑜𝑤𝑛 ⇒ 𝑧 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑐 = 90% = 0.90 ⇒ 𝑧𝑐 = 𝑧0.90 = 1.645
The Point Estimate of Mean µ is �̅� = 1105
The 90% Confidence Interval is (�̅� − 𝐸, �̅� + 𝐸),𝑤ℎ𝑒𝑟𝑒 𝐸 = 𝑧𝑐𝜎
√𝑛= 1.645 (
240
√60) = 50.97
Therefore, 90% CI for mean µ is,
(�̅� − 𝐸, �̅� + 𝐸) = (1105 − 50.97, 1105 + 50.97) = (1054.03, 1155.97)
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 9
18. Given a random sample of 24 measurements recorded a sample mean 35 and
with a standard deviation 5. What is the maximal margin of error E? Construct a 90%
confidence interval for parameter of interest. [Ans: (33.251,36.749)]
𝐺𝑖𝑣𝑒𝑛: 𝑛 = 24; 𝑚𝑒𝑎𝑛, �̅� = 35 ⇒ 𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑃𝑎𝑟𝑎𝑚𝑒𝑡𝑒𝑟 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑖𝑠 𝜇 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛, 𝑠 = 5,⇒ 𝜎 − 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝐴𝑁𝐷 𝑛 < 30 ⇒ 𝑡 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑑𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝑓𝑟𝑒𝑑𝑜𝑚, 𝑣 = 𝑛 − 1 = 24 − 1 = 23 𝑎𝑛𝑑 𝑐 = 90% = 0.90 ⇒ 𝑡𝑣,𝑐 = 𝑡23,0.90 = 1.714
The Point Estimate of Mean µ is �̅� = 35
The 90% Confidence Interval is (�̅� − 𝐸, �̅� + 𝐸),𝑤ℎ𝑒𝑟𝑒 𝐸 = 𝑡𝑣,𝑐𝑠
√𝑛= 1.714 (
5
√24) = 1.749
Therefore, 90% CI for mean µ is,
(�̅� − 𝐸, �̅� + 𝐸) = (35 − 1.749, 35 + 1.749) = (𝟑𝟑. 𝟐𝟓𝟏, 𝟑𝟔. 𝟕𝟒𝟗)
19. Given a random sample of 50 measurements of carbon in air from a region on one
day recorded a sample mean of 210 with a standard deviation of 55. What is the
maximal margin of error E? Construct a 95% confidence interval for the parameter
of interest. [Ans: (194.755, 225.245)]
𝐺𝑖𝑣𝑒𝑛: 𝑛 = 50; 𝑚𝑒𝑎𝑛, �̅� = 210 ⇒ 𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑃𝑎𝑟𝑎𝑚𝑒𝑡𝑒𝑟 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑖𝑠 𝜇 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛, 𝑠 = 55,⇒ 𝜎 − 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝑩𝑼𝑻 𝒏 > 𝟑𝟎 ⇒ 𝑧 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑐 = 95% = 0.95 ⇒ 𝑧𝑐 = 1.96
The Point Estimate of Mean µ is �̅� = 210
The 95% Confidence Interval is (�̅� − 𝐸, �̅� + 𝐸),𝑤ℎ𝑒𝑟𝑒 𝐸 = 𝑧𝑐𝜎
√𝑛= 1.96 (
55
√50) = 15.245
Therefore, 95% CI for mean µ is, (�̅� − 𝐸, �̅� + 𝐸) = (210 − 15.245, 210 + 15.245)
= (𝟏𝟗𝟒. 𝟕𝟓𝟓, 𝟐𝟐𝟓. 𝟐𝟒𝟓)
20. In a random sample of 519 students, it was found that 234 were seniors. Compute
and interpret a 99% confidence interval for the total number of seniors in the
campus. [Ans: (0.395,0.507)]
𝐺𝑖𝑣𝑒𝑛: 𝑛 = 519; 𝑟 = 234 ⇒ 𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑃𝑎𝑟𝑎𝑚𝑒𝑡𝑒𝑟 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑖𝑠 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 𝑝
�̂� =𝑟
𝑛=234
519= 0.451
𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠: 𝐶𝑙𝑒𝑎𝑟𝑙𝑦 ℎ𝑖𝑔ℎ𝑒𝑟 𝑠𝑡𝑢𝑑𝑖𝑒𝑠 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦 = 234 > 5 𝑎𝑛𝑑
𝑡ℎ𝑒 𝑟𝑒𝑠𝑡 𝑜𝑓 𝑡ℎ𝑒𝑚(𝑜𝑡ℎ𝑒𝑟 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦) 𝑎𝑟𝑒 519 − 234 = 285 > 5 𝑎𝑛𝑑 𝑐 = 99% = 0.99
⇒ 𝑧𝑐 = 𝑧0.99 = 2.58 © Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 10
The Point Estimate of Proportion p is = �̂� = 0.451
The 99% Confidence Interval is (�̂� − 𝐸, �̂� + 𝐸),𝑤ℎ𝑒𝑟𝑒 𝐸 = 𝑧𝑐√𝑝�̂�
𝑛
𝐸 = 𝑧𝑐 × √�̂��̂�
𝑛= 2.58 × √
0.451 × 0.549
519= 0.056
Therefore, 99% CI for proportion p is,
(�̂� − 𝐸, �̂� + 𝐸) = (0.451 − 0.056, 0.451 + 0.056) = (𝟎. 𝟑𝟗𝟓, 𝟎. 𝟓𝟎𝟕)
21. Find the sample size necessary to determine the proportions within 5% at the 10%
level of significance if no preliminary estimate of proportion is known. [Ans: 271]
Since NO preliminary estimate of proportion p is given, we use the following formula for
estimation of sample size, n.
𝑛 =1
4(𝑧𝑐𝐸)2
𝐺𝑖𝑣𝑒𝑛 𝛼 = 10% ⇒ 𝑐 = 90% = 0.90, 𝑎𝑛𝑑 ℎ𝑒𝑛𝑐𝑒 𝑧0.90 = 1.645 𝑎𝑛𝑑 𝐸 = 5% = 0.05
𝑛 =1
4(𝑧𝑐𝐸)2
=1
4(1.645
0.05)2
= 270.60 ≃ 𝟐𝟕𝟏
22. A child psychologist wants to estimate the mean age at which a child learns to talk.
Find the sample size necessary for a 95% confidence level to ensure that the
sample mean is within 5 weeks for the mean age at which a child learns to talk.
Assume standard deviation as 10 weeks. [Ans: 16]
Here we are given with the details of confidence level, c=95%; Maximal Margin
of error, E = 5; and σ =10. We are asked to calculate the Sample size, n.
𝐴𝑙𝑠𝑜 𝑧𝑐 = 𝑧0.95 = 1.96; 𝐹𝑜𝑟 𝑆𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑀𝑒𝑎𝑛𝑠, 𝑤𝑒 ℎ𝑎𝑣𝑒
𝑛 = (𝑧𝑐𝜎
𝐸)2
= (1.96 × 10
5)2
= 15.36 ≈ 𝟏𝟔
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 11
23. A cloth manufacturing company claims that the mean tearing strength of their
curtain fabric is 120 pounds. A government inspection agency conducted tests on
100 curtain lengths revealing a mean strength of 115 pounds with a standard
deviation of 20 pounds. At the 10% level of significance, does the governments’
information support the manufacturer’s claim? [Ans: Reject H0]
a. Details given in the problem: 𝐺𝑖𝑣𝑒𝑛, 𝑛 = 100, �̅� = 115, 𝛼 = 0.1,
𝜎 = 20, 𝜇 = 120.𝐻𝑒𝑟𝑒 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝐵𝑈𝑇 𝑛 = 100 > 30,
𝑤𝑒 𝑤𝑖𝑙𝑙 𝑢𝑠𝑒 𝑧 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
b. State the Null hypothesis, Alternate hypothesis and what tail test is this:
Here 𝐻0: 𝜇 = 120 𝑣𝑠 𝐻1: 𝜇 ≠ 120; 𝑇ℎ𝑖𝑠 𝑖𝑠 𝑎 𝑡𝑤𝑜 𝑡𝑎𝑖𝑙 𝑡𝑒𝑠𝑡.
c. Find the Critical Statistic(Table value) and Illustrate: zα/2 = ±1.645
d. State and Compute test Statistic:
𝑧 =�̅�−𝜇𝜎
√𝑛
=115−120
20
√100
= −2.5
e. Compute p-value:
𝑝 = 2𝑃(|𝑍| > 𝑧) = 2𝑃(𝑍 > |−2.5|) = 2[1 − 𝑃(𝑍 < 2.5)] = 2[1 − 0.9938] = 0.0124
f. Conclusion using critical method:
𝑆𝑖𝑛𝑐𝑒 𝑡ℎ𝑒 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑡𝑒𝑠𝑡 𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐, 𝑧 = −2.5 𝑓𝑎𝑙𝑙𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛,
𝑤𝑒 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠.
g. Conclusion using p-value method:
𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑝 − 𝑣𝑎𝑙𝑢𝑒 = 0.0124 < 0.1(= 𝛼),𝑤𝑒 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠
2.58 -2.58 1.645 -1.645
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 12
24. A car company wishes to test the claim that at an average of 55 mph, the stopping
distance for auto brakes is 130 ft. In a random sample of 19 individuals that were
tested for their breaking distance were recorded a sample mean of 144 ft. with a
sample standard deviation of 20 ft. At the 10% level of significance, test the claim
that the stopping distance for a car traveling at 55 mph is more than the stated 130
ft. [Ans: Reject H0]
a. Details given in the problem: 𝐺𝑖𝑣𝑒𝑛, 𝑛 = 19, �̅� = 144, 𝛼 = 0.1,
𝑠 = 20, 𝜇 = 130.𝐻𝑒𝑟𝑒 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝐴𝑁𝐷 𝑛 = 19 < 30,
𝑤𝑒 𝑤𝑖𝑙𝑙 𝑢𝑠𝑒 𝑡 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑤𝑖𝑡ℎ (𝑛 − 1)𝑑. 𝑓. = 18 𝑑. 𝑓.
b. State the Null hypothesis, Alternate hypothesis and what tail test is this:
Here 𝐻0: 𝜇 = 130 𝑣𝑠 𝐻1: 𝜇 > 130; 𝑇ℎ𝑖𝑠 𝑖𝑠 𝑎 𝑜𝑛𝑒(𝑟𝑖𝑔ℎ𝑡) 𝑡𝑎𝑖𝑙 𝑡𝑒𝑠𝑡.
c. Find the Critical Statistic(Table value) and Illustrate: t18,0.1 = 1.33
d. State and Compute test Statistic:
𝑡 =�̅� − 𝜇𝑠
√𝑛
=144 − 130
20
√19
= 3.05
e. Compute p-value:
0.0005 < 𝑝 − 𝑣𝑎𝑙𝑢𝑒 < 0.005
f. Conclusion using critical method:
𝑆𝑖𝑛𝑐𝑒 𝑡ℎ𝑒 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑡𝑒𝑠𝑡 𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐, 𝑧𝑡 = 3.05 𝑓𝑎𝑙𝑙𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛, 𝑤𝑒 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠.
g. Conclusion using p-value method:
𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑝 − 𝑣𝑎𝑙𝑢𝑒 < 0.1(= 𝛼), 𝑤𝑒 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠
2.58 -2.58 1.33
0.0005 0.005 α = 0.1
p-value © Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 13
25. A SAT tutoring center claims that the average Math scores of their students in SAT is
500. A small sample of 40 students was considered and has given a sample mean
score of 521.5 with a sample standard deviation of 120.5. At 1% level of significance
do you have sufficient evidence to prove that the average Math score on SAT is
different than 500. [Ans: We fail to Reject H0]
a. Details given in the problem: 𝐺𝑖𝑣𝑒𝑛, 𝑛 = 40, �̅� = 521.5, 𝛼 = 0.01, 𝑠 =
120.5, 𝜇 = 500.𝐻𝑒𝑟𝑒 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 BUT 𝑛 = 40 > 30
⟹ 𝑤𝑒 𝑤𝑖𝑙𝑙 𝑢𝑠𝑒 𝑧 − 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑡𝑟𝑒𝑎𝑡𝑖𝑛𝑔 𝑠 ≈ 𝜎
b. State the Null hypothesis, Alternate hypothesis and what tail test is this:
Here 𝐻0: 𝜇 = 500 𝑣𝑠 𝐻1: 𝜇 ≠ 500; 𝑇ℎ𝑖𝑠 𝑖𝑠 𝑎 𝑡𝑤𝑜 𝑡𝑎𝑖𝑙 𝑡𝑒𝑠𝑡.
c. Find the Critical Statistic(Table value) and Illustrate: zα/2 = ±2.58
d. State and Compute test Statistic:
𝑧 =�̅�−𝜇𝜎
√𝑛
=521.5−500
120.5
√40
= 1.13
e. Compute p-value:
𝑝 = 2𝑃(|𝑍| > 𝑧) = 2𝑃(𝑍 > |1.13|) = 2[1 − 𝑃(𝑍 < 1.13)] = 2[1 − 0.8708] = 0.2584
f. Conclusion using critical method:
𝑆𝑖𝑛𝑐𝑒 𝑡ℎ𝑒 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑡𝑒𝑠𝑡 𝑠𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐, 𝑧 = 1.13 𝐷𝑂𝐸𝑆 𝑁𝑂𝑇 𝑓𝑎𝑙𝑙 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛,
𝑤𝑒 𝑓𝑎𝑖𝑙 𝑡𝑜 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠.
g. Conclusion using p-value method:
𝐶𝑙𝑒𝑎𝑟𝑙𝑦 𝑝 − 𝑣𝑎𝑙𝑢𝑒 = 0.2584 > 0.01(= 𝛼), 𝑤𝑒 𝑓𝑎𝑖𝑙 𝑡𝑜 𝑟𝑒𝑗𝑒𝑐𝑡 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 ℎ𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑠.
2.58 -2.58 2.58 -2.58
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 14
NORMAL APPROXIMATION TO BINOMIAL PROBLEMS
26. In economics, of all new products put on the market, 60% failed and are taken
off the market within 2 years. Suppose a store introduces 80 new products. Use
the normal approximation for the binomial distribution what is the probability
that within 2 years 57 or more will fail with correction for continuity? [Ans: 0.0262]
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5. 𝐺𝑖𝑣𝑒𝑛 𝑛 = 80, 𝑝 = 0.60, 𝑞 = 1 – 𝑝 = 0.40
𝑛𝑝 = (80) (0.60) = 48 > 5 𝑎𝑛𝑑 𝑛𝑞 = (80) (0.40) = 32 > 5
⟹ 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠 𝑎𝑟𝑒 𝑠𝑎𝑡𝑖𝑠𝑓𝑖𝑒𝑑. 𝐻𝑒𝑛𝑐𝑒 𝑤𝑒 𝑐𝑎𝑛 𝑝𝑟𝑜𝑐𝑒𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑁𝑜𝑟𝑚𝑎𝑙 𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑖𝑜𝑛 𝑡𝑜 𝐵𝑖𝑛𝑜𝑚𝑖𝑎𝑙.
𝑁𝑜𝑤, 𝜇 = 𝑛𝑝 = (80)(0.60) = 48; 𝜎 = √𝑛𝑝𝑞 = √80 (0.60)(0.40) = 4.38
WITH CORRECTION: 𝑃( 𝑥 ≥ 57 ) = 𝑃(𝑥 ≥ 56.5) = 𝑃 (𝑥 − 𝜇
𝜎 ≥
56.5 − 48
4.38)
= 𝑃 (𝑍 ≥ 1.94) = 1 − 𝑃(𝑍 < 1.94) = 1 − 0.9738 = 𝟎. 𝟎𝟐𝟔𝟐
EXTRA INFORMATION−WITHOUT CORRECTION: 𝑃( 𝑥 ≥ 57 ) = 𝑃 ( 𝑥 − 𝜇
𝜎 ≥
57 − 48
4.38)
= 𝑃( 𝑍 ≥ 2.05) = 1 − 𝑃(𝑍 < 2.05) = 1 − 0.9798 = 0.0202
27. In economics, of all new products put on the market, 60% failed and are taken
off the market within 2 years. Suppose a store introduces 80 new products. Use
the normal approximation for the binomial distribution what is the probability
that within 2 years fewer than 52 will fail without correction for continuity and
with correction for continuity? [Ans: Without: 0.7517 & With: 0.7881]
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5. 𝐺𝑖𝑣𝑒𝑛 𝑛 = 80, 𝑝 = 0.60, 𝑞 = 1 – 𝑝 = 0.40
𝑛𝑝 = (80) (0.60) = 48 > 5 𝑎𝑛𝑑 𝑛𝑞 = (80) (0.40) = 32 > 5
⟹ 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠 𝑎𝑟𝑒 𝑠𝑎𝑡𝑖𝑠𝑓𝑖𝑒𝑑. 𝐻𝑒𝑛𝑐𝑒 𝑤𝑒 𝑐𝑎𝑛 𝑝𝑟𝑜𝑐𝑒𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑁𝑜𝑟𝑚𝑎𝑙 𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑖𝑜𝑛 𝑡𝑜 𝐵𝑖𝑛𝑜𝑚𝑖𝑎𝑙.
𝑁𝑜𝑤, 𝜇 = 𝑛𝑝 = (80)(0.60) = 48; 𝜎 = √𝑛𝑝𝑞 = √80 (0.60)(0.40) = 4.38
WITH CORRECTION: 𝑃( 𝑥 < 52 ) = 𝑃(𝑥 ≤ 51) = 𝑃(𝑥 ≤ 51.5) = 𝑃 (𝑥 − 𝜇
𝜎 ≤
51.5 − 48
4.38)
= 𝑃 (𝑍 ≤ 0.80) = 𝟎. 𝟕𝟖𝟖𝟏
WITHOUT CORRECTION: 𝑃( 𝑥 < 52 ) = 𝑃(𝑥 ≤ 51) = 𝑃(𝑥 ≤ 51) = 𝑃 (𝑥 − 𝜇
𝜎 ≤
51 − 48
4.38)
= 𝑃( 𝑍 ≤ 0.68) = 𝟎. 𝟕𝟓𝟏𝟕 © Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 15
28. In economics, of all new products put on the market, 60% failed and are taken
off the market within 2 years. Suppose a store introduces 80 new products. Use
the normal approximation for the binomial distribution what is the probability
that within 2 years more than 62 will fail without correction for continuity? [Ans:
0.0003]
𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5.
𝐺𝑖𝑣𝑒𝑛 𝑛 = 80, 𝑝 = 0.60, 𝑞 = 1 – 𝑝 = 0.40
𝑛𝑝 = (80) (0.60) = 48 > 5 𝑎𝑛𝑑 𝑛𝑞 = (80) (0.40) = 32 > 5
⟹ 𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠 𝑎𝑟𝑒 𝑠𝑎𝑡𝑖𝑠𝑓𝑖𝑒𝑑. 𝐻𝑒𝑛𝑐𝑒 𝑤𝑒 𝑐𝑎𝑛 𝑝𝑟𝑜𝑐𝑒𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑁𝑜𝑟𝑚𝑎𝑙 𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑖𝑜𝑛 𝑡𝑜 𝐵𝑖𝑛𝑜𝑚𝑖𝑎𝑙.
𝑁𝑜𝑤, 𝜇 = 𝑛𝑝 = (80)(0.60) = 48; 𝜎 = √𝑛𝑝𝑞 = √80 (0.60)(0.40) = 4.38
WITHOUT CORRECTION: 𝑃( 𝑥 > 62 ) = 𝑃(𝑥 ≥ 63) = 𝑃 (𝑥 − 𝜇
𝜎 ≥
63 − 48
4.38)
= 𝑃 (𝑍 ≥ 3.42) = 1 − 𝑃(𝑍 < 3.42) = 1 − 0.9997 = 𝟎. 𝟎𝟎𝟎𝟑
EXTRA INFORMATION−WITH CORRECTION: 𝑃( 𝑥 > 62) = 𝑃( 𝑥 ≥ 63 )
= 𝑃 ( 𝑥 − 𝜇
𝜎 ≥
62.5 − 48
4.38)
= 𝑃( 𝑍 ≥ 3.31) = 1 − 𝑃(𝑍 < 3.31) = 1 − 0.9995 = 𝟎. 𝟎𝟎𝟎𝟓
© Ven M
udun
uru
© Venkateswara Rao Mudunuru Spring 2016 Exam-3 Review Solutions 16
Chapter-8: Hypothesis Testing Problem Template for the Exam-3
a. Details given in the problem:
b. Assumptions (if any):
c. Null, Alternate Hypotheses and the tail test?
d. Find the Critical Statistic(Table value) and Illustrate:
e. State and Compute test Statistic:
f. Compute p-value:
g. Conclusion using critical method:
h. Conclusion using p-value method:
Critical Statistic:
© Ven M
udun
uru