Name: mohammed ali aljabri ID: 201506128

STAT130 Fall 2018

Assignment 3 on Units 3 and 4.

1. A bank has kept records of the checking balances of its customers which is
normally distributed and determined that the average daily balance of its
customers is $300 with a standard deviation of $50.

(a) What is the probability that the sample mean of 16 randomly selected checking
accounts will be more than $320?

 = 300 SD= 50 n=16


x  = 50/SQRT16 =12.5
n

P(X  320)  0.0548

(b) What is the probability that the sample mean of 16 randomly selected checking
accounts will be less than $310?

P(X < 310)  0.7881

(c) What is the probability that the sample mean of 36 randomly selected checking
accounts will be between $310 and $320?

P(310  X  320) = P(X  310)  P(X  320)  0.1151-0.082= 0.0331

(d) If the population of the balances of customers is not normally distributed, which, if
any, of the questions above can you answer? Justify your answer.

We can answer Question C by getting the probability of the mean sample between $310
and $320. This is because the sample size is 36, which is greater than 30. But, it fulfils
the assumptions of normality.

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2. A department store has determined that 25% of all their sales are credit sales. A
random sample of 75 sales is selected. A random sample of 75 sales is selected.

(a) what is the distribution of the sample proportion of the credit card sales, why?

N= 75
 p  p  .25
p(1  p) .25(1  .25)
p    .0.05
n 75

The sampling distribution of p is approximately a normal distribution n (0.25,0.05). We can

simply assume that it is normally distributed because its’ sample size is bigger than 30, in this case
say 75 which fulfills the assumption of normality.

(b) What is the probability that the sample proportion will be greater than 0.34?

z = (0.34-0.25)/0.05) = 1.8, P(z>1.8) = 0.0359

(c) What is the probability that the sample proportion will be between 0.196 and 0.354?

P [ (0.196-0.25)/0.05) < z < (0.354-0.25)/0.05]

P (-1.08) < z < (2.08) = 0.8599-0.0188=0.8412

(d) What is the probability that the sample proportion will be less than 0.25?

It will be 0.5000 because 0.25 is the mean of the sample.

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 3. The number of television sets produced from an assembly line each day is
normally distributed, for 20 randomly selected days, The production line average
452.3 and standard deviation 17.4 sets per day.

(a) Construct a 95% confidence interval for the population mean number of sets per
hour?

N=20

Mean=452.3 SD=17.4

UCL = X  Margin of error  452.3  7.626  459.926

LCL = X  Margin of error  452.3  7.626  444.674

(b)What is margin of error used in (a)?

Using the Z table. Because 1-α = .95, probability = (1-α)/2 = .475. In the Z table, the Z value
corresponding to probability = .475 is 1.96. Then:

 17.4
Z  1.96  7.626
n 20

(c)What sample size should be taken so that a 95% confidence interval will have a
margin of error less than 14 sets per day?

17.4
14= 1.96 = n =2.436 n= 5.934
n
So, the sample size should be MORE than 5.934 per day.

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 4. In a survey of 472 personnel directors, 63% thought that they would be hiring
new personnel over the next three months.

(a) Construct a 98% confidence interval for the proportion of all personnel directors
planning to hire personnel over the next three months?

p(1  p) .63(1  .63)

N=472  p =p=0.63 p    .0.0222
n 472

Confidence interval 98%= 0.682 and 0.578.

(b)Find the minimum sample size necessary, if they wish to be accurate within 2% of the
true proportion.

p(1  p) .63(1  .63)

E=  p    .0.0222
n 472

Confidence interval=98%

P = 0.63 q = 37 z = 1.96

= (0.63) (0.37) (1.96/0.02)2= 2238.69

So approximately minimum sample size is 2239.

(b)Find the maximum sample size necessary, if they wish to be accurate within 2% of the
true proportion.

From Mega Stat Program, we found out that the sample size p should be maximum 3154.