Based on past data, the producers of Ice Mountain bottled water knew that the pr

Question

Based on past data, the producers of Ice Mountain bottled water knew that the proportion of people who preferred Ice Mountain to tap water was 0.663. To see how consumer perception of their product has changed, they decide to conduct a survey. Of the 64 respondents, 48 indicated that they preferred Ice Mountain to the tap water in their homes. The 90% confidence interval for this proportion is ( 0.661 , 0.839 ). What is the best conclusion of those listed below?

1) We can conclude that the proportion of consumers who prefer Ice Mountain to their tap water is smaller than 0.663.

2) The confidence interval does not provide enough information to form a conclusion.

3) The proportion of consumers who prefer Ice Mountain is 0.663 with 90% confidence.

4) We can not claim that the proportion of consumers who prefer Ice Mountain to their tap water differs from 0.663

. 5) We can claim that the proportion of consumers who prefer Ice Mountain to their tap water is larger than 0.663.

Explanation / Answer

As the sample proportion 0.663 lies within the 90% confidence interval (0.661, 0.839), we can conclude with 90% confidence that proportion of consumers who prefer Ice Mountain is 0.663.

Answer: Option 3. The proportion of consumers who prefer Ice Mountain is 0.663 with 90% confidence.

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