1. Computer Services, Inc. wants to determine a confidence interval for the average CPU time of their teleprocessing transactions. A sample of 196 transactions yielded a mean of 5 seconds. The population standard deviation is 1.4 seconds. Determine a 97% confidence interval for the average CPU time.

2. A new brand of breakfast cereal is being market tested. One hundred boxes of the cereal were given to consumers to try. The consumers were asked whether they liked or disliked the cereal. You are given their responses below.

	Response	Frequency
	Liked	60
	Disliked	40
		100

a.	What is the point estimate of the proportion of people who will like the cereal?
b.	Construct a 95% confidence interval for the proportion of all consumers who will like the cereal.
c.	What is the margin of error for the 95% confidence interval that you constructed in part b?
d.	With a .95 probability, how large of a sample needs to be taken to provide a margin of error of .09 or less?