Neumann University BUS 201 A Handout Assignment 3 Due date: 10:20 AM 12/7/15 Name:______________ Please read carefully: There are 5 questions on this assignment. In order to receive full credit your answer should include: Answer each question in the space that has been provided under the question. If you need additional space, you may use the back of the page. Please clearly mark the question number. If required attach print-out only the result not data. You are expected to provide a clear and readable answer Necessary and appropriate assumptions (when applicable) Formulas and graphs Relevant conclusion(s) BUS 201 Final handout Due date: 10:20 PM 12/7/2015 Name : _______________ 1. A major cell phone service provider has determined that the number of minutes that its customers use their phone per month is normally distributed with a mean equal to 445.5 minutes with a standard deviation equal to 177.8 minutes. a. The company is thinking of changing its fee structure so that anyone who uses the phone less than 250 minutes during a given month will pay a reduced monthly fee. Based on the available information, what percentage of current customers would be eligible for the reduced fee? b. What is the percentage of current customers that use their cell phone between 200 and 400 minutes during a given month? c. The company is thinking of charging a lower rate for customers who use the phone less than a specified amount. If they wish to give the rate reduction to no more than 12 percent of their customers, what should the cut-off be? 2. You're a production manager for a newspaper. You want to find the % defective newspaper. Of 40 newspapers, 35 had defects. a. What is the 93% confidence interval estimate of the population proportion defective? b. What sample size is needed to estimate population proportion within .03 with 96% confidence? 3. The St. Joe Company grows pine trees and the average annual increase in tree diameter is 3.1 inches with a standard deviation of 0.5 inches. A random sample of n=50 trees is collected. a. What is the probability of the sample mean being less than 2.9 inches? b. What is the probability of the sample mean being more than 3.21 inches 4. A manager wishes to estimate a population mean using a 97% confidence interval estimate whit in 44. If the population standard deviation is thought to be 680. What is the required Sample size? 5. The cost of a college education has increased at a much faster rate than costs in general over the past twenty years. In order to compensate for this, many students work part or full-time in addition to attending classes. At one university, it is believed that the average hours that student work per week exceeds 20 hours. To test this, a random sample of 6 students was selected and the following values were observed: 25, 15, 10, 40, 20, 22. a. Based on the sample data, construct and interpret a 98 percent confidence interval estimate for the population mean. b. Based on your answer in part \"a\