2. The Residential Energy Consumption Survey found in 2001that 47% of American h

Question

2. The Residential Energy Consumption Survey found in 2001that 47% of American households had internet access. A marketsurvey organization repeated the study in a certain town with25,000 households, using a simple random sample of 500 households:239 of the sample households had internet access.

           (a) The percentage of households in the town with internetaccess is estimates as_______; this estimate is likely to be off by______ or so.

           (b) If possible, find a 95%-confidence interval for thepercentage of all 25,000 households with internet access. Ifthis is not possible, explain why not.   

Explanation / Answer

When you have a sample of 500 from apopulation, the percentage value (proportion) may be different fromthe percentage value you would obtain if all of the population ischecked (true population proportion). For the confidence level, itis that the true population percentage falls within a range, called the confidence interval, around the proportion valueyou obtained of 47.8.

you are testing the 2-tail hypothesis that thetrue population value is different (higher or lower) than the valueobserved.

It is also assumed that your sample representsa random sample

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