Assignment 3 - Chapters 9, 10 and 11

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SHORT ANSWER. Solve the following problems. Please show your work

EU (European Union) countries report that 46% of their labour force is female. The United Nations wants to determine if
the percentage of women in the Canadian labour force is the same. Representatives from Statistics Canada plan to check
a random sample of more than 10 000 employment records on file to estimate the percentage of women in the Canadian
labour force.

Points: 4
1) Statistics Canada wants to estimate the percentage of women in the Canadian labour force to within ±5%, with
90% confidence. How many employment records should be sampled?

Points: 4
2) Managers actually select a random sample of 525 employment records, and find that 229 of the people are
females. Construct the 90% confidence interval.

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Points: 5
3) The average number of pages in a novel is 326 with a standard deviation of 24 pages. If a 3)
sample of 50 novels is randomly chosen, what is the probability the average number of
pages in these books is between 319 and 331?

Points: 5
4) The percentage of people who recycle their old phone books is 15.8% on average. If 240 4)
people are randomly selected, what is the probability that more than 20% of them recycle
their phone book?

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SHORT ANSWER. Solve the following problems. Please show your work

Consider the following to answer questions 4 through 7 below:

A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned
that high employee turnover is partially responsible for the high defect rate. In an effort to decrease the percentage of
defective chips, management decides to provide additional training to those employees hired within the last year. After
training was implemented, a sample of 450 chips revealed only 27 defects. Was the additional training effective in lowering
the defect rate?

Points: 2
5) Write the null and alternative hypotheses.

Points: 2
6) What is the value of the test statistic (Z score)?

Points: 3
7) What is the associated P-value?

Points: 2
8) State your conclusion using = 0.01.

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Consider the following to answer the questions 8 through 11 below:

Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Last year
the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if their clients now have a
longer life expectancy, on average, so they randomly sample some of their recently paid policies. The insurance company will
only change their premium structure if there is evidence that people who buy their policies are living longer than before. The
sample has a mean of 78.6 years and a standard deviation of 4.48 years.

86 75 83 84 81 77 78 79 79 81
76 85 70 76 79 81 73 74 72 83

Points: 2
9) Write the null and alternative hypotheses.

Points: 2
10) What is the value of the test statistic (Z score)?

Points: 3
11) What is the associated P-value?

Points: 2
12) State your conclusion using = 0.05.

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Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Five
years ago the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if its clients
now have a longer life expectancy compared to five years ago, on average, so it randomly samples some of its recently
paid policies. The insurance company will only change its premium structure if there is evidence that people who buy
their policies now are living longer than they were five years ago. The sample has a mean of 78.6 years and a standard
deviation of 4.48 years.

Points: 4
13) For more accurate cost determination, ABI Insurance wants to estimate the average life expectancy to within
one year with 95% confidence. How many randomly selected recently paid policies would it need to sample?

Points: 4
14) Suppose ABI samples 100 recently paid policies. This sample yields a mean of 77.7 years and a standard
deviation of 3.6 years. Find a 90% confidence interval and interpret.