Unformatted text preview: b. Compute a 95% confidence interval for p . 3. It costs you $10 to draw a sample of size n = 1 and measure the attribute of interest. You have a budget of $1,500. a. Do you have sufficient funds to estimate the population mean for the attribute of interest with a 95% confidence interval 5 units in width? Assume 14 = σ . b. If you used a 90% confidence level, would your answer to part a change? Explain. 4. A gigantic warehouse located in Tampa, Florida, stores approximately 60 million empty aluminum beer and soda cans. Recently, a fire occurred at the warehouse. The smoke from the fire contaminated many of the cans with blackspot, rendering them unusable. A University of South Florida statistician was hired by the insurance company to estimate p, the true proportion of cans in the warehouse that were contaminated by the fire. How many aluminum cans should be randomly sampled to estimate p to within 0.02 with 90% confidence?...
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This note was uploaded on 02/06/2012 for the course ECON 103 taught by Professor Gispy during the Spring '11 term at Prairie State College .
 Spring '11
 Gispy

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