Modern Business Statistics with Microsoft Excel 5th Edition By David R. Anderson – Test Bank

Modern Business Statistics with Microsoft Excel 5th Edition By David R. Anderson – Test Bank

CHAPTER 8—INTERVAL ESTIMATION

MULTIPLE CHOICE

1. As the degrees of freedom increase, the t distribution approaches the
a. uniform distribution
b. normal distribution
c. exponential distribution
d. p distribution

ANS: B PTS: 1

2. If the margin of error in an interval estimate of  is 4.6, the interval estimate equals
a.
b.
c.
d.

ANS: B PTS: 1

3. The t distribution is a family of similar probability distributions, with each individual distribution depending on a parameter known as the
a. finite correction factor
b. sample size
c. degrees of freedom
d. standard deviation

ANS: C PTS: 1

4. The probability that the interval estimation procedure will generate an interval that does not contain the actual value of the population parameter being estimated is the
a. level of significance
b. confidence level
c. confidence coefficient
d. error factor

ANS: A PTS: 1

5. To compute the minimum sample size for an interval estimate of , we must first determine all of the following except
a. desired margin of error
b. confidence level
c. population standard deviation
d. degrees of freedom

ANS: D PTS: 1

6. The use of the normal probability distribution as an approximation of the sampling distribution of is based on the condition that both np and n(1 – p) equal or exceed
a. .05
b. 5
c. 10
d. 30

ANS: B PTS: 1

7. The sample size that guarantees all estimates of proportions will meet the margin of error requirements is computed using a planning value of p equal to
a. .01
b. .50
c. .51
d. .99

ANS: B PTS: 1

8. We can reduce the margin of error in an interval estimate of p by doing any of the following except
a. increasing the sample size
b. increasing the planning value p* to .5
c. increasing the level of significance
d. reducing the confidence coefficient

ANS: B PTS: 1

9. In determining an interval estimate of a population mean when  is unknown, we use a t distribution with
a. degrees of freedom
b. degrees of freedom
c. n  1 degrees of freedom
d. n degrees of freedom

ANS: C PTS: 1

10. The expression used to compute an interval estimate of  may depend on any of the following factors except
a. the sample size
b. whether the population standard deviation is known
c. whether the population has an approximately normal distribution
d. whether there is sampling error

ANS: D PTS: 1