For this problem, carry at least four digits after the decimal in your calculati

Question

For this problem, carry at least four digits after the decimal in your calculations. Answers may vary slightly due to rounding.

In a marketing survey, a random sample of 990 supermarket shoppers revealed that 270 always stock up on an item when they find that item at a real bargain price.
(a) Let p represent the proportion of all supermarket shoppers who always stock up on an item when they find a real bargain. Find a point estimate for p. (Round your answer to four decimal places.)

(b) Find a 95% confidence interval for p. (Round your answers to three decimal places.)

lower limit

upper limit

Give a brief explanation of the meaning of the interval.
95% of all confidence intervals would include the true proportion of shoppers who stock up on bargains.
5% of the confidence intervals created using this method would include the true proportion of shoppers who stock up on bargains.   
95% of the confidence intervals created using this method would include the true proportion of shoppers who stock up on bargains.
5% of all confidence intervals would include the true proportion of shoppers who stock up on bargains.

(c) As a news writer, how would you report the survey results on the percentage of supermarket shoppers who stock up on items when they find the item is a real bargain?
Report p?.
Report the margin of error.   
Report the confidence interval.
Report p? along with the margin of error.

What is the margin of error based on a 95% confidence interval? (Round your answer to three decimal places.)

Explanation / Answer

a)
Point estimate for p = 270/990 = 0.2727

b)
z value at 95% = 1.96
CI = p +/- z *sqrt(p * (1-p)/n)
= 0.2727 +/- 1.96 * sqrt(0.2727 * (1-0.2727)/990)
= (0.2450 , 0.3005)

lower limit = 0.2450
upper limit = 0.3005
95% of all confidence intervals would include the true proportion of shoppers who stock up on bargains.

c)
p =0.2727

ME = z * sqrt(p * (1-p)/n)
= 1.96 * sqrt(0.2727 * (1-0.2727)/990)
= 0.028

Report p along with ME

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