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8 . The 99% confidence interval, because it includes all but one percent of the distribution. The 95% confidence interval will be narrower, because it excludes five percent of the distribution.

8.2: confidence interval, single population mean, standard deviation unknown, student’s t

9 . The t -distribution will have more probability in its tails (“thicker tails”) and less probability near the mean of the distribution (“shorter in the center”).

10 . Both distributions are symmetrical and centered at zero.

11 . df = n – 1 = 20 – 1 = 19

12 . You can get the t -value from a probability table or a calculator. In this case, for a t -distribution with 19 degrees of freedom, and a 95% two-sided confidence interval, the value is 2.093, i.e.,
t α 2   = 2.093 . The calculator function is invT(0.975, 19).

13 . E B M =   t α 2 ( s n ) = ( 2.093 ) ( 0.3 20 ) =   0.140
98.4 ± 0.14 = (98.26, 98.54).
The calculator function Tinterval answer is (98.26, 98.54).

14 . t α 2 = 2.861. The calculator function is invT(0.995, 19).
E B M = t α 2 ( s n ) = ( 2.861 ) ( 0.3 20 ) = 0.192
98.4 ± 0.19 = (98.21, 98.59). The calculator function Tinterval answer is (98.21, 98.59).

15 . df = n – 1 = 30 – 1 = 29. t α 2   = 2.045
E B M =   z t ( s n ) = ( 2.045 ) ( 0.3 30 ) =   0.112
98.4 ± 0.11 = (98.29, 98.51). The calculator function Tinterval answer is (98.29, 98.51).

8.3: confidence interval for a population proportion

16 . p = 280 500 = 0.56
q = 1 p = 1 0.56 = 0.44
s = p q n = 0.56 ( 0.44 ) 500 = 0.0222

17 . Because you are using the normal approximation to the binomial, z α 2 = 1.96 .
Calculate the error bound for the population ( EBP ):
E B P =   z a 2 p q n = 1.96 ( 0.222 ) = 0.0435
Calculate the 95% confidence interval:
0.56 ± 0.0435 = (0.5165, 0.6035).
The calculator function 1-PropZint answer is (0.5165, 0.6035).

18 . z α 2 = 1.64
E B P =   z a 2 p q n = 1.64 ( 0.0222 ) = 0.0364
0.56 ± 0.03 = (0.5236, 0.5964). The calculator function 1-PropZint answer is (0.5235, 0.5965)

19 . z α 2 = 2.58
E B P =   z a 2 p q n = 2.58 ( 0.0222 ) =   0.0573
0.56 ± 0.05 = (0.5127, 0.6173).
The calculator function 1-PropZint answer is (0.5028, 0.6172).

20 . EBP = 0.04 (because 4% = 0.04)
z α 2 = 1.96 for a 95% confidence interval
n =   z 2 p q E B P 2 =   1.96 2 ( 0.5 ) ( 0.5 ) 0.04 2 =   0.9604 0.0016 = 600.25
You need 601 subjects (rounding upward from 600.25).

21 . n =   n 2 p q E B P 2 =   1.96 2 ( 0.6 ) ( 0.4 ) 0.04 2 =   0.9220 0.0016 = 576.24
You need 577 subjects (rounding upward from 576.24).

22 . n =   n 2 p q E B P 2 =   1.96 2 ( 0.5 ) ( 0.5 ) 0.03 2 =   0.9604 0.0009 = 1067.11
You need 1,068 subjects (rounding upward from 1,067.11).

9.1: null and alternate hypotheses

23 . H 0 : p = 0.58
H a : p ≠ 0.58

24 . H 0 : p ≥ 0.58
H a : p <0.58

25 . H 0 : μ ≥ $268,000
H a : μ <$268,000

26 . H a : μ ≠ 107

27 . H a : p ≥ 0.25

9.2: outcomes and the type i and type ii errors

28 . a Type I error

29 . a Type II error

30 . Power = 1 – β = 1 – P (Type II error).

31 . The null hypothesis is that the patient does not have cancer. A Type I error would be detecting cancer when it is not present. A Type II error would be not detecting cancer when it is present. A Type II error is more serious, because failure to detect cancer could keep a patient from receiving appropriate treatment.

32 . The screening test has a ten percent probability of a Type I error, meaning that ten percent of the time, it will detect TB when it is not present.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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