Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of most products. In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer's extended warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive. Suppose that three months after starting to offer the new warranty, a random sample of 517 customer sales invoices shows that 145 out of 517 digital camera customers purchased the new warranty. Find a 95 percent confidence interval for the proportion of all digital camera customers who have purchased the new warranty Are we 95 percent confident that this proportion exceeds 20? (Round your answers to 3 decimal places.) The 95 percent confidence interval is Yes 0.211 0.285 the entire interval above 0.20
Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of most products. In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer's extended warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive. Suppose that three months after starting to offer the new warranty, a random sample of 517 customer sales invoices shows that 145 out of 517 digital camera customers purchased the new warranty. Find a 95 percent confidence interval for the proportion of all digital camera customers who have purchased the new warranty Are we 95 percent confident that this proportion exceeds 20? (Round your answers to 3 decimal places.) The 95 percent confidence interval is Yes 0.211 0.285 the entire interval above 0.20
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 26PPS
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Transcribed Image Text:Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of
most products, In this exercise we considera major electronics retailer that wishes to increase the proportion of customers who buy
extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer's extended
warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive.
Suppose that three months after starting to offer the new warranty, a random sample of 517 customer sales invoices shows that 145 out
of 517 digital camera customers purchased the new warranty. Find a 95 percent confidence interval for the proportion of all digital
camera customers who have purchased the new warranty. Are we 95 percent confident that this proportion exceeds 20? (Round your
answers to 3 decimal places.)
The 95 percent confidence interval is
Yes
0.211
0.285
the entire interval
above 0.20.
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