Chapter 6: Q114SE (page 375)
Products 鈥淢ade in the USA.鈥 Refer to Exercise 2.154 (p. 143) and the Journal of Global Business (Spring 2002) survey to determine what 鈥淢ade in the USA鈥 means to consumers. Recall that 106 shoppers at a shopping mall in Muncie, Indiana, responded to the question, 鈥淢ade in the USA鈥 means what percentage of U.S. labor and materials?鈥 Sixty-four shoppers answered,鈥100%.鈥
a. Define the population of interest in the survey.
b. What is the characteristic of interest in the population?
c. Estimate the true proportion of consumers who believe 鈥淢ade in the USA鈥 means 100% U.S. labor and materials using a 90% confidence interval.
d. Give a practical interpretation of the interval, part c.
e. Explain what the phrase 鈥90% confidence鈥 means for this interval.
f. Compute the sample size necessary to estimate the true proportion to within .05 using a 90% confidence interval.
Short Answer
a. All consumers who shop at the shopping mall in Muncie, Indiana constitute the population.
b. The true population of consumers who believe 鈥淢ade in the USA鈥 means 100% of U.S. labor and material.
c. The point estimate of the population proportion p is 0.604 andthe 90% confidence interval for the population proportion is (0.5259, 0.6821).
d. The true population of consumers who believe 鈥淢ade in the USA鈥 means that 10% U.S. labor and materials lies between 0.5259 and 0.6821 at 90% confidence.
e. 90% confidence means 90% confidence interval will contain the true population proportion.
f. To estimate the true proportion to be within 0.05 by using 90% confidence interval, 259 samples are needed