In-Class Assignment # 5 11.28.11
Answer the following questions on a separate sheet of paper.
1. A congressional committee wishes to estimate the average annual subsidy received by tenant farmers in a
southern state. A random sample of 349 farms is taken, the sample mean is found to be $5,800 with a sample
standard deviation of $550. Compute the 99% confidence interval estimate of the annual subsidy?
2. The NPP Company wants to estimate the average number of minutes its customers spend on long-distance calls
per month. The company wants the estimate made with 95% confidence and a margin of error of no more than 4
minutes. With a standard deviation of 18 minutes per month, what should the sample size be?
3. Two hundred people are randomly chosen at a shopping mall to taste-test a new brand of fruit drink. They are
asked to rate the drink on a scale from 1 to 5, with 5 being very good and 1 being very bad. The results of the
survey reveal that the average rating is 3.53 with a standard deviation of 1.22. The marketing division of the fruit
drink distributor claims it sells drinks only if the average rating is more than 3.5. Using the p-value method, what
is the conclusion for hypothesis testing the above results at a .05 level of significance?
y
Dependent Variable
20
25
39
x
Independent Variable
3
5
10
4. Use the above information. Calculate the slope of the regression equation.
5. Use the above information. Calculate the y-intercept of the regression equation.