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1. A company that produces brendis concerned about the distribution of the amount of sodium in its bread. The company takes a

6. A recent Gallop poll showed Trumps approval rating 40% with a margin or error of 3%. a) Find the confidence interval. c.
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Answer #1

1)

a)

Level of Significance ,    α =    0.05          
'   '   '          
z value=   z α/2=   1.9600   [Excel formula =NORMSINV(α/2) ]      
                  
Standard Error , SE = σ/√n =   10.0000   / √   100   =   1.0000
margin of error, E=Z*SE =   1.9600   *   1.0000   =   1.9600
                  
confidence interval is                   
Interval Lower Limit = x̅ - E =    103.00   -   1.959964   =   101.0400
Interval Upper Limit = x̅ + E =    103.00   -   1.959964   =   104.9600
95%   confidence interval is (   101.04   < µ <   104.96   )

b)

Level of Significance ,    α =    0.01          
'   '   '          
z value=   z α/2=   2.5758   [Excel formula =NORMSINV(α/2) ]      
                  
Standard Error , SE = σ/√n =   10.0000   / √   100   =   1.0000
margin of error, E=Z*SE =   2.5758   *   1.0000   =   2.5758
                  
confidence interval is                   
Interval Lower Limit = x̅ - E =    103.00   -   2.575829   =   100.4242
Interval Upper Limit = x̅ + E =    103.00   -   2.575829   =   105.5758
99%   confidence interval is (   100.42   < µ <   105.58   )

2)
a) decreases
b) increases
c) increases

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