Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
52 views

Tutorial 8 - Questions

This document provides examples and questions related to constructing confidence intervals from sample data. Confidence intervals provide a range of values that are likely to contain the true population parameter based on a given level of confidence. Some key points covered include: - How to calculate 90%, 95%, and 99% confidence intervals for things like average IQ scores, weight loss amounts, and debit card spending based on sample data and assumptions about the population distribution. - How the required sample size to achieve a given precision depends on the population standard deviation, with larger variations requiring more data. - Comparing 95% and 99% confidence intervals calculated from test score data, noting the 99% CI will have a longer total length.

Uploaded by

Gowshika Sekar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
52 views

Tutorial 8 - Questions

This document provides examples and questions related to constructing confidence intervals from sample data. Confidence intervals provide a range of values that are likely to contain the true population parameter based on a given level of confidence. Some key points covered include: - How to calculate 90%, 95%, and 99% confidence intervals for things like average IQ scores, weight loss amounts, and debit card spending based on sample data and assumptions about the population distribution. - How the required sample size to achieve a given precision depends on the population standard deviation, with larger variations requiring more data. - Comparing 95% and 99% confidence intervals calculated from test score data, noting the 99% CI will have a longer total length.

Uploaded by

Gowshika Sekar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Nanyang Business School

AB1202 – STATISTICS AND ANALYSIS

Tutorial :8
Topics : Confidence Interval

1. IQ tests are designed to yield scores that are approximately normally distributed. A
reporter gathers the IQ scores from 22 employees of this firm and records the sample
mean IQ as 106. She assumes that the population standard deviation is 15.
(1) Compute 90% confidence interval for the average IQ in this firm.
(2) Compute 99% confidence interval for the average IQ in this firm.

2. U.S. consumers are increasingly viewing debit cards as a convenient substitute for cash
and checks. The average amount spent annually on a debit card is $7790. Assume that this
average was based on a sample of 100 consumers and that the population standard
deviation is $500. Construct the 99% confidence interval for the population mean amount
spent annually on a debit card.

3. In order to estimate the mean weight loss of all customers in a weight loss program, a
nutritionist takes a sample of 18 dieters and records their weight loss one month after
joining the program. He computes the sample mean and standard deviation of weight loss
as 11.5 pounds and 9.2 pounds, respectively. He believes weight loss is likely to be
normally distributed. Calculate the 95% confidence interval for the population mean.

4. Consider the built-in dataset ChickWeight in R.


(1) Consider the population of 10-day old chicken (Time==10), where we define an RV of
their weights as 𝑋!" . Use the data of 10-day old chicken, build a 90% confidence
interval of the weight of 10-day old chicken 𝜇!"
(2) Consider the population of newborn chicken (Time==0), where we define an RV of
their weight as 𝑋" . Use the data of newborn chicken, build a 95% confidence interval
of the weight of newborn chicken 𝜇"

5. Suppose that 𝑋! , … , 𝑋# form a random sample from the normal distribution with
unknown mean µ and known variance 𝜎 $ . How large must a random sample be in order
that there will be a 95% confidence interval for µ with a total length less than 0.01σ?
(Total length of a CI =2* 𝑍".&'( 𝜎/√𝑛)

6. An analyst would like to construct 95% confidence intervals for the mean stock returns in
two industries. Industry A is a high-risk industry with a known population standard
deviation of 20.6%, whereas industry B is a low-risk industry with a known population
standard deviation of 12.8%.
1
Nanyang Business School

(1) What is the minimum sample size required by the analyst if she wants to restrict the
)
absolute error (i.e., (𝑍 ∗ ) in a CI ) to 4% for Industry A?
√#

(2) What is the minimum sample size required by the analyst if she wants to restrict the
absolute error to 4% for Industry B?
(3) Why do the results differ if they use the same absolute error?

7. Consider the file W8-Question.csv, which contains the test scores of 149 students.
(1) Load the file into R and calculate 95% and 99% CI for the mean test scores
(2) Compare the 95% CI with the 99% CI. Is the 99% CI’s total length longer or shorter than
the 95% CI?
(3) If we collect data from another 150 students, how would this larger sample affect the
total length of the 95% CI? Suppose the sample standard deviation under the larger
sample is similar to the original one
(4) Based on your answer from (1), can we conclude that there is a 0.95 probability that
the E(X) is in the CI you just calculated? why?

You might also like