MODEL AND INFERENCES – ASSIGNMENT #1
Course Name: MODEL AND INFERENCES
Course Code: STA301
Section Code: M-8120
Instructor: Dr. Insia Hussain
Assignment # 1
World’s Richest. Each year, Forbes magazine publishes a list of the world’s richest
people. In 2009, the six richest people, their citizenship, and their wealth (to the
nearest billion dollars) are as shown in the following table. Consider these five people
a population of interest.
Name
Wealth ($ billion)
William Gates III (G)
40
Warren Buffett (B)
38
Carlos Slim Helu (H)
35
Lawrence Ellison (E)
23
Ingvar Kamprad (K)
22
a. Find the mean, μ, of the variable.
b. For each of the possible sample sizes 2, 3, 4 construct a table similar to Table 7.2
on page 299 and draw a dotplot for the sampling distribution of the sample mean
similar to Fig. 7.1 on page 299.
c. Construct a graph similar to Fig. 7.3 and interpret your results.
d. For each of the possible sample sizes, find the point estimator and determine the
probability that the sample mean will equal the population mean.
e. For each of the possible sample sizes, find the interval estimators and determine
the probability that the sample mean will be within 0.5 inch of population mean.
f. For each of the possible sample sizes, find the interval estimators and determine
the probability that the sample mean will be within 0.5 inch of population mean.
g. Construct a table similar to Table 7.4 and interpret your results.