Jeremy Doncouse
Week 6; Chapter 8
MGMT313
Problems 1, 3, 7, 8, 13, 14, 16, 21, 27, 29, 33, 37, 41, 43
1
a. What is the standard error of the mean, ?
b. At 95% confidence, what is the margin of error?
Business perspective. Problems 1 and 3 are important in the business world when
companies need to know how accurate their findings and machinery are. This allows
them to make accurate assumptions and accurate decisions based on those
assumptions.
3
a. Compute 95% confidence interval for the population mean.
b. Assume n = 120. Provide a 95% confidence interval for the population mean.
c. What is the effect of a larger sample size on the interval estimate? It decreases
the sample size.
Business perspective. Problems 1 and 3 are important in the business world when
companies need to know how accurate their findings and machinery are. This allows
them to make accurate assumptions and accurate decisions based on those
assumptions.
7
Mean = $11,500, n = 60, and population standard deviation = $4,000. What is
the margin of error using 95% confidence. What would you recommend if the study
required a margin of error of $500?
To decrease the margin of error I would recommend increasing the sample size
significantly.
n = 40, sample mean = 25, and population standard deviation is = 5
σ
n = 60, sample mean = 80, and
σ
= 15

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Business perspective. Here we are trying to determine how much an average
business spends on web development. This can be useful in determining why your
own business is not receiving enough traffic on its website or in finding out why
your business is getting more traffic. The larger the sample taken the smaller the
margin of error. Each company must decide for themselves the margin of error they
determine to be sufficient for their purposes.
8
n = 10, mean = 71, and population standard deviation = 5.
a. What assumptions should the researcher be willing to make if a margin of error
is desired?
That the population is approximately normal.
b. Using 95% confidence, what is the margin of error?
c. What is the margin of error if 99% confidence is desired?
Business perspective. While the sample size is small historical data provides a
reason to believe the population is approximately normal. Given these assumptions
one can determine how normal their customer satisfaction index approximates
what is considered normal and by with what level of confidence. Knowing this


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- Spring '10
- n/a
- Prime number, MySpace, business perspective., Jeremy Doncouse
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