Suppose you have data on thepercentage change in the annual

1. Suppose you have data on thepercentage change in the annual price of 100 randomly chosen single family homes for a large population of such homes. You believe sampling distribution concepts would help to draw inferences about the percentage change in annual price for the population of homes from which this sample is selected. Choose only one statement and provide a brief justification below:

1. Sampling distribution of the mean because __________________________________
2. Sampling distribution of the proportion because ­­­­­­­­­­­­­______________________________

2. The starting salary among recent graduates of the Evian Business School has a standard deviation of $17,000. If you randomly survey 40 students and calculate the average of their starting salaries, what is the probability that the average in the sample will exceed the average among all students by more than $5,000? Choose only one of the two responses below:

(a) This question cannot be answered because we do not know that the average salary is

(b) It does not matter what the average salary is, the probability can be calculated and it is (please show your work and the probability below):

3. With the introduction of HDTV, TV stations will eventually have to start producing and broadcasting their shows in this new (digital) standard. Newark Broadcasting Company (NBC), trying to decide on their own strategy, conducted a poll in major metropolitan areas and found that 39 households were likely to purchase an HDTV within the next 18 months, while the remaining 161 were not likely to purchase an HDTV within the next 18 months.

NBC’s strategy is to proceed with a substantial investment in new technology if their poll results show that over 15% of the households are likely to purchase HDTV. Should NBC proceed with this investment? Use a 95% Confidence Interval to answer this question.

4. Using data from above, how large would the sample have to be in order for the margin of error to be no more than 3%? Assume that the sample proportion calculated in (a) is the population proportion (assume a=0.05).