44. A pharmaceutical company has just developed a new capsule to alleviate the symptoms of allergies
and colds. However, they are concerned about the variability in the amount of time until the drug
becomes effective. In a random sample of 10 individuals who suffer from allergies, the amount of time
(in hours) for the capsule to take effect was recorded and listed as follows: 5, 7, 6, 10, 9, 12, 8, 17, 4,
and 16. Estimate with 90% confidence the variance of the time for the drug to become effective.
45. The sales manager of a large multinational corporation is concerned that some salespersons perform
very well and others quite poorly. To help analyze the problem he draws a random sample of 20
salespersons, determines their commission incomes (in thousands of dollars), and calculates the
following statistics: = $37.2, and s = $7.8. Do these statistics provide sufficient evidence at the 5%
significance level to conclude that the population variance exceeds $35 million2?
Applicants’ Grades
The grades of a sample of 10 applicants, selected at random from a large population, are 71, 86, 75, 63,
92, 70, 81, 59, 80, and 90.
46. {Applicants’ Grades Narrative} Compute the sample variance.
47. {Applicants’ Grades Narrative} Construct a 90% confidence interval estimate for the population
variance.
ANS: