EBCS 1524 & EFBC 2524

TEST1 – 19 August 2022

ASSESSOR: Mrs. L. da Silva

MODERATOR: Mrs. E Girmay

TIME: 2 hours MARKS: 50

SECTION A [ 13x2=26 ]

INSTRUCTION:
 The following 13 questions are multiple choice questions and have to be answered on
the optical form provided.
 USE A DARK PENCIL to complete the optical form.

1. If you want to estimate the proportion of office workers who will respond to e-mails in
an hour to be within ± 0.05, what will the sample size be if you must be 90% confident in
your results?
(a) 271*
(b) 27.1
(c) 172
(d) 7
(e) 165
(f) none of the above

2. A random sample of 26 gave a mean of 22.3167. Construct a 50% confidence interval

for the true mean if a population variance of 36 is assumed. What is the lower limit of
this interval?
(a) 23.1098
(b) 21.5118
(c) 1.5862
(d) 9.5172
(e) 21.5236*
(f) none of the above

3. A random sample of 26 gave a mean of 22.3167 and a variance of 36. Construct a 90%
confidence interval for the true mean. What is the upper limit of this interval?
(a) 24.3265*
(b) 24.2524
(c) 10.7027

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 (d) 20.3069
(e) 2.0098
(f) none of the above

4. A random sample of 16 gave a mean of 22.3167 and a variance of 36. Construct a 98%
confidence interval for the true mean. What is the margin of error for this interval?
(a) 1.1767
(b) 3.0618
(c) 3.903*
(d) 10.2391
(e) 2.7370
(f) none of the above

5. Two groups of males are polled concerning their interest in a new electric razor that has
four cutting edges. A sample of 64 males under age 40 indicated that only 12 were
interested, while in a sample of 36 males over age 40, only 8 indicated an interest.
Construct a 99% confidence interval for the difference between age-groups proportions
that indicated interest in a new razor. What is the lower limit of this interval?
(a) 0.1836
(b) -0.253*
(c) -0.0532
(d) -0.2183
(e) 0.0465
(f) None of the above

6. Two groups of males are polled concerning their interest in a new electric razor that has
four cutting edges. A sample of 64 males under age 40 indicated that only 12 were
interested, while in a sample of 36 males over age 40, only 8 indicated an interest. Test
the hypothesis that there is a difference between age-groups proportions that indicated
interest in a new razor. Use a significance level of 2%. What is the test statistic?
(a) 5
(b) -0.4164*
(c) -0.253
(d) 0.1836
(e) -4.9968
(f) None of the above

7. Two groups of males are polled concerning their interest in a new electric razor that has
four cutting edges. A sample of 64 males under age 40 indicated that only 12 were
interested, while in a sample of 36 males over age 40, only 8 indicated an interest. Test
the hypothesis that there is a difference between age-groups proportions that did not
indicate interest in a new electric razor. Use a significance level of 0.2%. What is the
critical value used for this test?
(a) 1.282
(b) 3.090*
(c) 1.330
(d) 3.610

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 (e) 0.674
(f) none of the above

8. Two groups of males are polled concerning their interest in a new electric razor that has
four cutting edges. A sample of 64 males under age 40 indicated that only 12 were
interested, while in a sample of 36 males over age 40, only 8 indicated an interest. Test
the claim that 90% of males under 40 are not interested in the new electric razor. What
is the test statistic? Use a significance level of 10%.
(a) 1.282
(b) -2.3333*
(c) 1.645
(d) 0.0972
(e) -0.1957
(f) none of the above

9. Kayla Bakery sells biscuits in boxes of 400 grams. However, not all boxes contain exactly
400 grams. The quality control department wants to know what percentage of biscuits
boxes does not contain 400 grams of biscuits. A preliminary sample showed that 25% of
the boxes do not contain 400 grams of biscuits. Approximately how large a sample
would be required to estimate the percentage of boxes not containing 400 grams of
biscuits so that the maximum error for a 95% confidence interval for the population
proportion is 0.025?
(a) 14.7
(b) 1152.48
(c) 1153*
(d) 15
(e) 1152
(f ) None of the above

10. The management of a supermarket wanted to investigate if male customers spend less
money on average than the female customers. A sample of 30 female customers and 45
male customers yielded the following results with respect to the amounts spent at this
supermarket:
Female Male
x 1 = 187 x 2 = 173
S1 = 14.4 S2 = 17.5
Assume that the amounts spent at this supermarket by all male and female customers
are normally distributed with equal but unknown population standard deviations. The
management would like to perform the relevant hypothesis test at a 10% level of
significance. The null and alternative hypothesis are:
(a) Ho: µ1 = µ2 ; H1 : µ1 ≠ µ2
(b) Ho: µ1 = µ2 ; H1 : µ1 > µ2*
(c) Ho: µ1 = µ2 ; H1 : µ1 < µ2
(d) Ho: µ1 > µ2 ; H1 : µ1 ≤ µ2
(e) Ho: µ1 < µ2 ; H1 : µ1 ≠ µ2
(f ) None of the above

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11. The management of a supermarket wanted to investigate if male customers spend less
money on average than the female customers. A sample of 30 female customers and 45
male customers yielded the following results with respect to the amounts spent at this
supermarket:
Female Male
x 1 = 187 x 2 = 173
S1 = 14.4 S2 = 17.5
Assume that the amounts spent at this supermarket by all male and female customers
are normally distributed with equal but unknown population standard deviations. The
management would like to perform the relevant hypothesis test at the 1% level of
significance. What is the test statistic for this test?
(a) 3.78*
(b) 1.0206
(c) 2.326
(d) 1.282
(e) 2.0919
(f) None of the above

12. The management of a supermarket wanted to investigate if male customers spend less
money on average than the female customers. A sample of 30 female customers and 45
male customers yielded the following results with respect to the amounts spent at this
supermarket:
Female Male
x 1 = 187 x 2 = 173
S1 = 14.4 S2 = 17.5
Assume that the amounts spent at this supermarket by all male and female customers
are normally distributed with equal but unknown population standard deviations. The
management would like to perform the relevant hypothesis test at the 1% level of
significance. What is the standard error for this distribution for this test?
(a) 13.7176
(b) 3.7037*
(c) 0.9321
(d) 6.6925
(e) 0.8689
(f) None of the above

13. The management of a supermarket wanted to investigate if male customers spend less
money on average than the female customers. A sample of 30 female customers and 45
male customers yielded the following results with respect to the amounts spent at this
supermarket:
Female Male
x 1 = 187 x 2 = 173
S1 = 14.4 S2 = 17.5
Assume that the amounts spent at this supermarket by all male and female customers
are normally distributed with equal but unknown population standard deviations. The
management would like to perform the relevant hypothesis test at the 10% level of
significance. What is the critical value used for this test?

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 (a) 1.645
(b) 1.282*
(c) -1.282
(d) 1.310
(e) -1.697
(f) None of the above

SECTION B [ 24 ]

Answer this section in the answer book provided.

QUESTION 1 [6]
The manager of a large company is in the process of deciding whether to adopt a lunchtime
exercise program. The purpose of such a program is to improve the health of workers and
in doing so, reduce medical expenses. To obtain more information, the manager instituted
an exercise program for the employees in one office. Medical expenses for 6 months before
the program and for 6 months after the program are recorded and are as follows:

Month 1 2 3 4 5 6
Before exercise program 68 44 30 58 35 33
After exercise program 59 42 20 62 25 30

Test at a 0.5% level of significance whether exercise programs reduce the average
medical expenses.

Ho : μ 1 = μ 2 H1 : μ 1 > μ 2 √
di = 9 2 10 -4 10 3 d =5
2
sd = 32 sd = 5.6569
tstat = 5 / ¿ ) √ = 2.1651 √
t5;0.995 = 4.032 √
2.1651 > 4.032 - False – cannot reject H o - The exercise program did not decrease the
medical expenses – medical expenses stayed the same. √ √

QUESTION 2 [ 13 ]

In a random sample of 20 patients who visited the emergency room of hospital 1, it was
found that the variance of the waiting time (in minutes) was 128.0 and the average waiting
time was 32.85 minutes. In a random sample of 17 patients in the emergency room of
hospital 2, it was found that the variance to be 178.8 and the average waiting time was
43.68 minutes.

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2.1 Use a 10% level of significance to construct a confidence interval for the difference in the
average waiting time of hospital 1 and 2 and interpret the interval. (7)

Sp2 = [19x128 +16x178.8]/(20+17-2) = 151.2229

Sp = 12.2973 √

CI(µ1-µ2)0.9
√ 20 17
(
= (32.85 – 43.68) ± t20+17-2;1-0.1/2 x 12.2973 x (
1
) +( ))
1 √√

= -10.83 ± 1.690 x 12.2291 x 0.3299

= -10.83 ± 6.8558
= [ -17.6858 ; -3.9742 ] √ √
0 is not incl. – there is a difference in the average waiting time of the two hospitals √ √

2.2 Use a 1% level of significance to test the hypothesis that the average waiting time of
hospital 2 is less than 1 hour. (6)
Ho : μ1 = 60 H1 : μ1 < 60 √
43.68−60
tstat =
√ 178.8 = -5.0322 √ √
17
-ttab = t16;0.99 = -2.583 √
-5.0322 < -2.583
True – Reject Ho – therefore the average waiting time for hospital 2 is less than 1 hour.
√√

QUESTION 3 [ 5 ]
The sample size needed to estimate a population mean with an interval estimate from 700
to 950 was found to be 13. If the population standard deviation was 150, what will the
confidence level be? (5)

( x125
150
) = 13√
2

α
(Z1- x 1.2)2 = 13
2
α
(Z1- x 1.2) = √ 13
2
α √13
Z1- =
2 1.2
= 3.00 √

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 α
1- = 0.9987
2
α =0.0026 √
Confidence level: 1 – α = 0.9974 = 99.74% √ √