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Prepare answers to the following assignments from the e-text, Applied Statistics in Business and Economics, by Doane and Seward:
Chapter 8 – Chapter Exercises - Like 8.48 and 8.64 but with different Numbers

Chapter 8

Like 8.48 But with different numbers: A sample of 20 pages was taken without replacement from the 1,591-page phone directory Ameritech Pages Plus Yellow Pages. On each page, the mean area devoted to display ads was measured (a display ad is a large block of multicolored illustrations, maps, and text). The data (in square millimeters) are shown below:

0 520 712 806 1072 0 536 738 856 1072
536 792 938 1072 324 676 806 1072 1072 260

(a) Construct a 95 percent confidence interval for the true mean. Please show your formulas and all calculations. Must use the equation editor.

Sample mean is: x=0+520+712+806+1072+0+536+738+856+1072+536+792+938+1072+324+676+806+1072+1072+26020=13,86020=693

Sample standard deviation is: xi | (xi-x)2 | 0 | 480,249 | 520 | 29,929 | 712 | 361 | 806 | 12,769 | 1072 | 143,641 | 0 | 480,249 | 536 | 24,649 | 738 | 2,025 | 856 | 26,569 | 1072 | 143,641 | 536 | 24,649 | 792 | 9,801 | 938 | 60,025 | 1072 | 143,641 | 324 | 136,161 | 676 | 289 | 806 | 12,769 | 1072 | 143,641 | 1072 | 143,641 | 260 | 187,489 | Total | 2,206,188 |
2,206,188(20-1)=340.76

Degrees of freedom are: v=n-1=20-1=19 Appendix D: t0.95=2.093 95% confidence interval is: x±tsn=693±2.093340.7620=693±159.48 95% confident the true mean is within the interval 533.52<μ<852.48.

(b) Why might normality be an issue here?

Normality might be an issue as the sample indicates a right skew since the median is higher than the mean.

(c) What sample size would be needed to obtain an error of ±10 square millimeters with 99 percent confidence?

z=2.576, s=340.76, E=10

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