A tag such as (C2 + C3) after a title names the Core Concepts parts the problem draws on, so you know where to look back.
The generated questions use new values on each attempt. Apply the workflow below to the values displayed in your version; the feedback attached to the problem gives the matching numerical answer.
Problem 1 — Constructing a Confidence Interval
For a sample with known population standard deviation:
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Match the confidence level to its critical value:
- 90%:
- 95%:
- 99%:
A 95% interval leaves 2.5% in each tail, so
. The z with is 1.645, the 90% value. - 90%:
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Compute the standard error.
-
Compute the margin of error.
-
Construct the interval.
Using
Problem 2 — May the Report Print This?
Sort each sentence by asking what it is about:
- Fine to print: the method captures the true mean at the stated long-run rate; “we are 95% confident the mean lies between the endpoints”; the endpoints bound the plausible values for the mean; this particular interval either contains
or not. - About individual customers: any sentence that puts a percentage of customers, or one customer’s wait, inside the interval. The interval estimates the mean; individual waits spread far wider.
- A probability on fixed
: “a 95% probability that the true mean is between…”, “the true mean will fall inside 95% of the time”. The true mean does not move; the interval does. - About other samples’ means: “a repeat study’s mean has a 95% chance to land inside”, “95% of all sample means lie between…”. Sample means cluster around
, not around this interval’s centre, so a repeat study lands inside at most 95% of the time, and usually less.
Problem 3 — Determining Required Sample Size
Use the requested confidence level, known or planning value of
Then take the ceiling:
Evaluate the full ratio before squaring. Always round up; rounding down can exceed the allowed margin of error.
Problem 4 — Precision vs. Confidence Trade-off
The table uses one sample, so
The 99% margin is always
For the colleague’s claim: neither confidence level is automatically best. Higher confidence misses less often but gives a wider, less informative interval. Choose the level before examining the data, based on the decision’s acceptable miss rate and the usefulness of the resulting precision.