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Suppose that the amount of time teenagers spend on the Internet is normally distributed, with a standard deviation of 1.5 hours. A sample of 100 teenagers is selected at random, and the sample mean is...

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Suppose that the amount of time teenagers spend on the Internet is normally distributed, with a standard deviation of 1.5 hours. A sample of 100 teenagers is selected at random, and the sample mean is computed as 6.5 hours.
  1. Determine the 99% confidence interval estimate of the population mean. (2 marks)
  2. Determine the 95% confidence interval estimate of the population mean, changing the sample size to XXXXXXXXXXmarks)
  3. Comment on how the confidence interval and changes to sample size will impact on the interval estimates. (3 marks)

Question 1(b)
The amount of time spent by Australian adults playing sports per day is normally distributed, with a mean of 4 hours and standard deviation of 1.25 hours. Use this information to answer the following question(s).
  1. Find the probability that a randomly selected Australian adult plays sport for more than 5 hours per day. ( 1mark)
  2. Find the probability that if four Australian adults are randomly selected, their average number of hours spent playing sport is more than 5 hours per day. ( 1mark)
  3. Find the probability that if four Australian adults are randomly selected, all four play sport for more than 5 hours per day (1 mark)

Question 2(a)
At present, many universities in Australia are adopting the practice of having lecture recordings automatically available to students. A university lecturer is trying to investigate whether having lecture recordings available to students has significantly decreased the proportion of students passing her course. When lecture recordings were not provided to students, the proportion of students that passed her course was 80%. The lecturer takes a random sample of 25 students, when lecture recordings are offered to students, and finds that 11 students have passed the course. Is there significant evidence to support this university lecturer’s claim? Use a = 0.01
(5 marks)
Question 2(b)
A drug company is interested in the effectiveness of a new sleeping pill. A random sample of 50 people try the new sleeping pill and the number of additional hours of sleep (compared with the nights without any sleeping pill), X, are recorded. The sample mean of additional hours of sleep is 2.2 hours and the sample standard deviation of X is 3 hours.
Test the claim that the new drug increases the number of hours of sleep at least by 2 hours on average at the 5% level of significance.
(5 marks)
Question 3(a)
In 2003, computers of Brand A controlled 25% of the market, Brand B 20%, Brand C 10% and Brand D 45%. In 2004, sample data were collected from many randomly selected stores throughout the country. Of the 1200 computers sold, 280 were Brand A, 270 were Brand B, 90 were Brand C and 560 were Brand D. Has the market changed since 2003? Test at the 1% significance level
(3marks)
Question 3(b)
A major insurance firm interviewed a random sample of 1500 college students to find out the type of life insurance preferred, if any. The results follow:
Insurance Preference
Gender Term Whole life No insurance
Female 170 110 470
Male 195 75 480

Is there evidence that the life insurance preference of male students is different to that of female students? Test using the 5% level of significance.
(3marks)
Question 3(c)
The following data are believed to have come from a normal probability distribution.
26 21 25 20 21 29 26 23 22 24
24 30 23 32 26 24 32 16 36 26
21 31 26 23 32 35 40 30 14 26
46 27 33 25 27 21 26 18 29 36

The mean of this sample equals 26.80, and the standard deviation equals 6.378.
Investigate at the 5% significance level to test this claim.
Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
110 Votes
Question 1(a)
Let X be the random variable representing the amount of time (in hours) teenagers spend on the
Internet.
Hence X~ N (μ, 1.5
2
) where μ is the true population mean of the amount of time (in hours)
teenagers spend on the Internet.
Let X be the sample mean of the amount of time (in hours) teenagers spend on the Internet.
and n be the sample size.
(i) Now X = 6.5 and n= 100
Since the population is normally distributed and the value of the population variance is known,
we can use the z-test to find the confidence interval for true population mean μ.
Let α be the level of significance. In the general, the (1-α)% confidence interval for μ is
μ ϵ ( X – zα/2 * σ/n1/2 , X + z α/2 * σ/n1/2 ) where σ is the population standard deviation.
Hence the 99% confidence interval would be
μ ϵ ( X – z0.005 * σ/n1/2 , X + z0.005 * σ/n1/2 )
Here X = 6.5, σ = 1.5 , n=100 , z0.005 ( from the z distribution table ) = 2.58
Hence μ ϵ (6.5– 2.58 * 1.5/1001/2 , 6.5+ 2.58 * 1.5/1001/2 ) => μ ϵ (6.11, 6.89)
The interpretation of the above confidence interval is that out of such 100 random intervals
constructed, 99 will contain the true population mean, μ.
Hence this interval (6.1,6.9) will contain μ with probability 99%.
(ii) Here n=300 and α=0.05
Hence the 95% confidence interval would be
μ ϵ ( X – z0.025 * σ/n1/2 , X + z0.025 * σ/n1/2 )
Hence μ ϵ (6.5– 1.95 * 1.5/3001/2 , 6.5+ 1.95 * 1.5/3001/2 ) => μ ϵ (6.33, 6.67)
The interpretation of the above confidence interval is that out of such 100 random intervals
constructed, 95 will contain the true population mean, μ.
Hence this interval (6.3,6.7) will contain μ with probability 95%.
(iii) There are two things to consider here, first the sample size and second the level of
confidence. Let’s consider the each one by one:
ï‚· When the size of the sample increases, keeping the level of confidence the
same, the width of the confidence interval decreases which means we get the
more precise confidence interval.
Consider an example below:
μ ϵ (6.5– 2.58 * 1.5/3001/2 , 6.5+ 2.58 * 1.5/3001/2 ) => μ ϵ (6.28, 6.72)

Here we have changed just the sample size, rest is the same as in part(i). We
can see that this confidence interval due to lower width has more precision.
ï‚· When the level of confidence decreases, keeping the sample size the same, the
width of the confidence interval decreases which means we get the more
precise confidence interval.
Consider an example below:
Here we just change the level of confidence to 95% from 99% in part (i)
μ ϵ (6.5– 1.95 * 1.5/1001/2, 6.5+ 1.95 * 1.5/1001/2) => μ ϵ (6.21, 6.79)

We can see that this confidence interval due to lower width has more
precision. Although the probability that this interval contains the true mean, μ
would decrease.
Hence increasing the sample size and decreasing the level of confidence together would decrease
the width of the interval, along with decreasing the probability of the interval containing the true
parameter.
Question 1(b)
Let Y be the random variable representing the time spent (in hours) by Australian adults playing
sports per day.
Hence Y ~ N( 4, 1.25
2
) where μ= 4 and σ= 1.25
(i) P( Y> 5) = P[z> (5-4)/1.25] where z is a standard normal variate
 P(z> 0.8) = 0.2119 (from the z table)
(ii) Let the average number of hours spent paying sport by four Adults Australian is Y
`
Since Y~ N(4, 1.25
2
) => Y ~N(4, 1.25
2
4)
(If a random variable is normally distributed, the sample mean of it would also be
normally distributed with same mean and variance divided by the sample size. This
means the sample mean has lower variability)
P(Y >5) = P[z> (5-4)/(1.25/2)]
 = P(z>1.6) = 0.0548(from the z table)
(iii) Suppose Y1 be the time spent by player 1 on the sports, Y2 be the time spent by player
2 on the sports, Y3 be the time spent by player 3 on the sports and Y4 be the time
spent by player 1 on the sports.
We assume all these to be independent of one another.
P(all four play sports for more than 5 hours per day)= P(Y1 >5, Y2 >5, Y3 >5, Y4 >5)
Since they are independent of one another, we can write
P(Y1 >5, Y2 >5, Y3 >5, Y4 >5) = P(Y1 >5)*P(Y2 >5)*P(Y3 >5)*P(Y4 >5)
Since each Yi is normally distributed, P(Y1 >5)*P(Y2 >5)*P(Y3 >5)*P(Y4 >5) = [P(Y1 >5)]
4
Now P(Y1 >5) = P[z> (5-4)/1.25] where z is a standard normal variate
 P(z> 0.8) = 0.2119 (from the z table)
Hence P(all four play sports for more than 5 hours per day) = 0.2119
5
= 0.460326
Question 2 (a)
Let p be the proportion of students passing the course after the adoption of practice of having
lecture recordings.
Let p be the estimate of p and n be the sample size.
We have p = 11/25= 0.44 and se( p )=[p*(1-p)/n]
0.5
= [0.44*(1-0.44)/25]
0.5
= 0.099277
Our hypothesize population proportion is 80%
Setting up the hypotheses:
Ho(null hypothesis): p >= 0.8
Ha(alternative hypothesis): p < 0.8
This is a left tailed test.
Under the null hypothesis, our test statistic would be (p-p) / se( p ) which follows standard
normal distribution.

Hence the value of the test statistic = (0.44-0.8)/ 0.099277= -3.6262
Since α= 0.01, hence the critical value (from the z-table) is -2.33.
Since the value of the test statistic is less than the critical value, we reject the null hypothesis.
Hence we can conclude that at 1% level of significance, the proportion of students passing the
course after the adoption of practice of having lecture recordings has significantly reduced from
0.8.
Question 2 (b)
Let μ be the true value of the mean of additional hours of sleep due to the new drug
Hence our hypotheses would be
Ho(null hypothesis): μ >=2
Ha(alternative hypothesis): μ < 2
This is a left tailed test.
We have sample...
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