Assignment 1: Simple random sampling Due date: February 1, 1996 PROBLEMS In this and in all future simulations, your writeup must include sufficient details so that I can follow your calculations without reading your computer output. In particular, all formulae used must be clearly identified and a reasonable collection of intermediate values must be given. The computer output should be appended and be sufficiently well annotated so that I can easily find the proper place to check more completely any particular computation. Efficient grading requires that IF I CAN'T QUICKLY DECIPHER WHAT YOU DID, THE PROBLEM WILL BE ASSUMED TO BE INCORRECT. 1. Use the addgen and survey programs to obtain the answers to the questionaire for a simple random sample of 200 addresses from Lockhart City. In your writeup provide the seed number you used in addgen. Estimate the following from your sample. Give standard errors for your estimates: a. The average price a household in Lockhart City is willing to pay for cable TV service. Actually we only know for each sampled household the price it is willing to pay for service rounded down to the nearest $5. Recognizing this limitation to question 4 of the survey questionnaire, use the answers to that question as the prices that the sampled houses are willing to pay. b. The average number of TV's per household. c. The proportion of houses willing to pay $10 for cable service. This really means, of course, at least $10. d. The average number of hours spent per week watching TV in households willing to pay $10 for cable service. e. The total number of adults in households willing to pay $10 for cable service. 2. Draw a histogram or stem-and-leaf diagram of the responses in your sample to question 8 (number of hours watching children's TV). Does the distribution of number of hours spent watching children's TV for households in Lockhart City appear normal? Find an approximate 95% confidence interval for the mean number of hours spent watching children's TV. Based on your histogram, is constructing a confidence interval an appropriate thing to do? Why or why not? (Hint: do you think that the sampling distribution of the mean viewing time for children's TV could be normal?)