Random sample of monthly rental charges

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John, a statistics student, collected a random sample of monthly rental charges for two-bedroom apartments in Marion and surronding counties. The following show the data John obtained in his random sample.

1245 1200 1160 1165 775 1085 1290 1290
1070 1265 1665 995 1215 1290 1450 1195
1205 1505 1415 1035 1110 1415 1330 1255
1470 1045 1335 1570 1425 1055 1590 1435
1030 1345 1570 1000 1250 1215 1245 1150
1465 1105 1420 885 1235 1230 1295 1390
1230 1095 1275 1090 1300 1545 1300 1385
1410 1155 1130 1235 1350 1115 1440 1700
1350 1075 1290 1175 1150 1590 1265 1355
1165 1070 1060 1335 1475 1395 1115 1285
1280 1255 945 1300 1245 1210 1305 1385
1380 1255 1150 1275 1270 1040 1280 1320

Question 1-6 are based on John's sample data.

1 The point estimate of the mean monthly rental charge is,

a 1,262.29
b 1,213.74
c 1,167.06
d 1,122.17

2 The sample variance is,

a 29,618.06
b 28,478.90
c 27,383.56
d 26,330.35

3 The estimated variance of the sample mean is,

a 28,478.90
b 28,182.25
c 308.52
d 296.66

4 The margin of error for a 95% interval estimate for the population mean rental charge is,

a 34.19
b 29.73
c 25.86
d 22.48

5 The 95% interval estimate for the population mean rental charge is,

a 1,207.58 1,317.00
b 1,217.84 1,306.74
c 1,228.10 1,296.48
d 1,242.75 1,281.83

6 In the previous question, to obtain a margin of error of ±$25 for a 95% interval estimate the minimum sample size is ________. For planning value, use the standard deviation from John's sample data.

a 248
b 221
c 197
d 176

7 In interval estimation of a population parameter, increasing the sample size would

a increase the margin of sampling error, making the interval estimate more precise.
b reduce the margin of sampling error, making the interval estimate more precise.
c reduce the margin of sampling error, increasing the confidence level.
d reduce the margin of sampling error, diminishing the error probability.

8 In interval estimation of a population parameter, increasing α would:

a reduce the margin of sampling error, and reduce the confidence level.
b reduce the margin of sampling error, and reduce the error probability.
c reduce the margin of sampling error, and make the interval estimate less precise.
d increase the margin of sampling error, and make the interval estimate more precise.

Reference no: EM133063840

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