Exam 4
Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Provide an appropriate response.
1) A point estimate is the value of a ______________ that estimates the value of a _______________. 1) _____
A) random variable; statistic B) parameter; statistic
C) random variable; parameter D) statistic; parameter

2) Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is put into a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of eight private colleges in the United States revealed the following endowments (in millions of dollars): 71.3, 41, 233.7, 495.5, 122.5, 177.9, 93.7, and 216.6. What value will be used as the point estimate for the mean endowment of all private colleges in the United States? 2) _____

A) 207.457 B) 1452.2 C) 8 D) 181.525

3) Determine the point estimate of the population mean for the confidence interval with a lower bound of 25 and an upper bound of 35. 3) _____

A) 35 B) 25 C) 30 D) 31

4) Compute the critical value z* that corresponds to a 94% level of confidence. 4) _____
A) 1.96 B) 1.645 C) 2.33 D) 1.88

5) In a sample of 10 randomly selected employees, it was found that their mean height was 63.4 inches. From previous studies, it is assumed that the standard deviation, σ, is 2.4. Compute the 95% confidence interval for μ. 5) _____

A) (59.7, 66.5) B) (58.1, 67.3) C) (61.9, 64.9) D) (60.8, 65.4)

6) True or False: As the level of confidence increases the margin of error decreases. 6) _____
A) True B) False

7) The grade point averages for 10 randomly selected students in an algebra class with 125 students are listed below. What is the effect on the width of the confidence