1. You have booked 330 reservations for your 300 room hotel for next weekend’s
centennial celebration. If each party with a reservation has a .9 chance of showing up to
claim a room, what is the probability that you will have more than 300 parties wanting a
room? Use the normal approximation to find P[x>300].
2. The exit polls show that the democratic candidate has won the election. In a sample of
n = 1300 voters, 676, or 52%, of those asked said they had voted for the democratic
candidate.
a. If, in reality, the election is dead even, what is the probability that an exit poll of
1300 will show 52% or more claiming to have voted democratic? P[p-hat>=.52].
Use the normal approximation to the binomial.
b. Given your result in part a, do you feel comfortable reporting the outcome as a
democratic victory at this time? Why, why not?
3. Take the Salary data you were given for the city employees (clerical, drafts, and
engineering – you will have to copy the data into one column each for women’s salaries,
men’s salaries, etc.), and construct 95% confidence interval estimates (use the
Estimating Mean Template and treat the data as sample data from a large population)
for:
a. Mean salary for women
b. Mean salary for men
c. Mean skill level for women
d. Mean skill level for men
e. What can you conclude from the four confidence intervals you have constructed
in parts a-d? Think about what you might say if you were a reporter for the local
newspaper and you wanted to stir up a controversy.
4. All new job applicants have to take an aptitude test that measures their problem solving
skills. Historically the scores on this test have been normally distributed with a mean
score of µ = 116 with a standard deviation of ? = 20. If we only hire candidates who
score above 125:
a. What is the chance of a random selection of n = 10 test takers having an average
score above 125.
b. Give a brief interpretation of your answer in part c. What can you deduce about
the 10 students?
5. To retain your McChick franchise, your fast food drive through should average at least
$300,000 per month. Given the receipts for the prior 12 months listed below:
a. Construct a 95% confidence interval estimate for the mean monthly receipts.
b. Does your franchise have a problem? Why or why not?
c. A new Chicken Little franchise is due to open down the street next month.
Should you be concerned? 6. Of 120 kindergarteners in our elementary school, 9 have been diagnosed with some
level of autism. Construct a 95% confidence interval for the true proportion of students
in this grade city-wide who have some level of autism. Nationally, the rate of autism for
new births is 1 out of 68 children. Does our school system have a problem? Why, why
not?

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