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Chapter 7: Q.2.2 (page 420)
Imagine taking an SRS of . Make a graph showing a possible distribution of the sample data. Give the value of the appropriate statistic for this sample.
The test statistic is .
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More on insurance An insurance company knows that in the entire population of homeowners, the mean annual loss from fire is and the standard deviation of the loss is . The distribution of losses is strongly right-skewed: many policies have loss, but a few have large losses. If the company sells policies, can it safely base its rates on the assumption that its average loss will be no greater than ? Follow the four-step process
Suppose we select an SRS of size from a large population having proportion p of successes. Let be the proportion of successes in the sample. For which value of p would it be safe to use the Normal approximation to the sampling distribution of ?
(a)
(b)
(c)
(d)
(e)
A researcher initially plans to take anSRS of size n from a population that has a mean of 80 and a standard deviation of . If he were to double his sample size (to ), the standard deviation of the sampling distribution of the sample mean would be multiplied by
(a) .
(b) .
(c) .
(d) .
(e)
For each boldface number in Exercises 5 to 8, (1) state whether it is a parameter or a statistic and (2) use appropriate notation to describe each number; for example, p = 0.65
Florida voters Florida has played a key role in recent presidential elections. Voter registration records show that 41% of Florida voters are registered as Democrats. To test a random digit dialing device, you use it to call 250 randomly chosen residential telephones in Florida. Of the registered voters contacted, 33% are registered, Democrats
IRS audits The Internal Revenue Service plans to examine an SRS of individual federal income tax returns from each state. One variable of interest is the proportion of returns claiming itemized deductions. The total number of tax returns in each state varies from over 15 million in California to about in Wyoming.
(a) Will the sampling variability of the sample proportion change from state to state if an SRS of tax returns is selected in each state? Explain your answer.
(b) Will the sampling variability of the sample proportion change from state to state if an SRS of of all tax returns is selected in each state? Explain your answer
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