week-10-practice-quiz-with-explanation-and-correct-answer

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Centennial College *

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Economics

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May 14, 2024

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1. Award: 10 out of 10.00 points 2. Award: 10 out of 10.00 points Score: 160/200 Points 80 % The fraction or ratio of a sample possessing a certain trait is called a: Population. Mean. Confidence interval. Proportion. Proportion is the same as fraction is the same as ratio is the same as percentage. References Multiple Choice Learning Objective: 08-03 Compute and interpret a confidence interval for a population mean when the population standard deviation is unknown. An economist wants to estimate the proportion of Canadians who own their homes. A random sample of 800 people reveals 544 own their homes. Develop a 95% confidence interval for the population proportion. 0.68 ± 0.053 0.68 ± 0.032 0.32 ± 0.032 0.68 ± 0.027 We have: x = 544 people, n = 800 people, 95% confidence interval For a 95% confidence interval z = 1.96. First calculate the sample proportion: So, we estimate 68% of people own their homes. The 95% confidence interval is . References Multiple Choice Learning Objective: 08-03 Compute and interpret a confidence interval for a population mean when the population standard deviation is unknown.
3. Award: 10 out of 10.00 points 4. Award: 10 out of 10.00 points 5. Award: 10 out of 10.00 points When do we apply the finite population correction factor? When our sample size is 5% or more of our finite population size. When we know exactly what the population size is. Anytime we take a sample. Anytime we are calculating a sample size. References Multiple Choice Learning Objective: 08-06 Adjust a confidence interval for a finite population. We know the total population is 3,000. 30% of the 500 people sampled say that they prefer hot dogs to hamburgers. Prepare a 95% confidence interval for the proportion that prefer hot dogs. 26.00% to 34.00% prefer hot dogs. 26.33% to 33.67% prefer hot dogs. 16.67% Cannot be determined from the information provided. References Multiple Choice Learning Objective: 08-04 Compute and interpret a confidence interval for a population proportion. Learning Objective: 08-05 Calculate the required sample size to estimate a population mean or population proportion. The necessary sample size depends on: The level of confidence desired The allowable margin of error The variability in the population of study The level of confidence desired, the allowable margin of error, and the variability in the population of study. The necessary sample size depends on all three of the factors listed. References Multiple Choice Learning Objective: 08-06 Adjust a confidence interval for a finite population.
6. Award: 10 out of 10.00 points 7. Award: 10 out of 10.00 points A pilot study shows that 64% of people living in the downtown core are single. A market research company wants to verify this claim. The company requires a 95% confidence interval. How many residents should be interviewed to keep the margin of error within 0.02 of the population proportion? 23 9604 2213 6147 We have: p = 0.64, E = 0.02, 95% confidence interval For a 95% confidence interval z = 1.96. A random sample of 2213 people is required. References Multiple Choice Learning Objective: 08-06 Adjust a confidence interval for a finite population. A random sample of 300 drivers revealed that 96 of them had received a speeding ticket in the last 3 months. Construct a 95% confidence interval for the number of drivers who receive speeding tickets over a three-month period. 0.32 ± 0.027 0.32 ± 0.001 0.32 ± 0.069 0.32 ± 0.053 We have: x = 96 drivers, n = 300 drivers, 95% confidence interval For a 95% confidence interval z = 1.96. First calculate the sample proportion: So, we estimate 32% of drivers have received a speeding ticket in the past 3 months. The 95% confidence interval is . References Multiple Choice Learning Objective: 08-04 Compute and interpret a confidence interval for a population proportion.
8. Award: 10 out of 10.00 points 9. Award: 10 out of 10.00 points 10. Award: 10 out of 10.00 points American Express cardholders are reported to spend more per purchase than either VISA or MasterCard cardholders. The average purchase at a giftware store is $70. The owner conducts a random survey of 120 people who use their American Express card and finds 84 of them make purchases in excess of the average $70. Conduct a 90% confidence interval for the number of American Express cardholders that make purchases greater than $70. 0.70 ± 0.002 0.70 ± 0.003 0.70 ± 0.069 0.70 ± 0.042 We have: x = 84 cardholders, n = 120 cardholders, 90% confidence interval For a 90% confidence interval z = 1.645. First calculate the sample proportion: So, we estimate 70% of American Express cardholders spend in excess of the average purchase. The 90% confidence interval is . References Multiple Choice Learning Objective: 08-04 Compute and interpret a confidence interval for a population proportion. A finite population is: a large population. an exactly known population size. 5% of the total population. a population from which samples were taken. References Multiple Choice Learning Objective: 08-05 Calculate the required sample size to estimate a population mean or population proportion. Determining a sample size depends on all of these except: confidence level. population size. maximum allowable error. variation in the population. Determining sample size does not depend on the population size. Population size has no bearing on how large or small a sample size will be. If there is no prior estimate of the population proportion, we use p = 0.5 to maximize the sample size. References Multiple Choice Learning Objective: 08-06 Adjust a confidence interval for a finite population.
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