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In 2008 the Better Business Bureau settled 77% of complaints it received (USA To

ID: 3158338 • Letter: I

Question

In 2008 the Better Business Bureau settled 77% of complaints it received (USA Today, March 2, 2009). Suppose you have been hired by the Better Business Bureau to investigate the complaints it received this year involving new car dealers. You plan to select a sample of new car dealer complaints to estimate the proportion of complaints the Better Business Bureau is able to settle. Assume the population proportion of complaints settled for new car dealers is 0.77, the same as the overall proportion of complaints settled in 2008.

Explanation / Answer

You plan to select a sample of new car dealer complaints to estimate the proportion of complaints the Better Business Bureau is able to settle. Assume the population proportion of complaints settled for new car dealers is 0.77, the same as the overall proportion of complaints settled in 2008.

proportions of complaints will be 0.77

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