A Large Software Development Firm Recently Relocated Its Facilities A Based on the Sample Results, Find the 95% Confidence

question 46

Essay

A large software development firm recently relocated its facilities. Top management
is interested in fostering good relations with their new local community and has
encouraged their professional employees to engage in local service activities. They wish
to determine the average number of hours the firm's professionals volunteer per month.
A random sample of 24 professionals reported the following number of hours: $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | } \hline 12 & 13 & 14 & 14 & 15 & 15 & 15 & 16 & 16 & 16 & 16 & 16 \\\hline 17 & 17 & 17 & 18 & 18 & 18 & 18 & 19 & 19 & 19 & 20 & 21 \\\hline\end{array}$$
A. Based on the sample results, find the 95% confidence interval and interpret.
b. For a more accurate determination, top management wants to estimate the average
number of hours volunteered per month by their professional staff to within one hour with
99% confidence. How many randomly selected professional employees would they need
to sample?
c. Suppose 40 professional employees are randomly selected. This sample yields a mean
of 15.2 hours and a standard deviation of 1.8 hours. Find a 95% confidence interval and
interpret.

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Definitions:

Additional Paid-in Capital

Additional paid-in capital represents the amount investors have paid for shares above the nominal value during public offerings or private placements.

Date of Acquisition

The specific date on which an asset is purchased or acquired by an entity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which is often a minimal amount that bears no relation to its market price.

Common Stock

Shares representing ownership in a corporation, entitling holders to a portion of the company's profits through dividends and voting rights.