Posted by Steven on Monday, March 4, 2013 at 4:04pm.
A company that manufactures exercise machines wanted to know the percentage of large companies that provides onsite health club facilities. A sample of 240 such companies showed that 96 of them provide such facilities on site.
a. What is the point estimate of the percentage of all such companies that provide these facilities? Explain briefly the concept of the point estimate.
b. Construct a 97% confidence interval for the percentage of all such companies.
c. What is the margin of error for this estimate?
d. If the company wanted a narrower interval, name two things it could do.
e. Which is the better strategy and why?
f. What does it mean to have a 97% confidence in the interval?

Statistics  Dr. Jane, Monday, March 4, 2013 at 4:26pm
p = 96/240 q = (24096)/240
n =240
a. find p
b. Find the zvalue for a 97% confidence interval. You will most likely have to find the tails which is 3%/2 or 1.5% or .015
c. The margin of error is the +/ value that you will add to the p that you found originally.
d. For a narrower interval, you can use a smaller confidence and/ or do something with the n. (Do you know what that is)
Most people misinterpret what 97% confidence really means...
If you had the same population and took the sample of the same size over and over and over again. Did the math and created many, many, many confidence intervals then 97% of those intervals that you created will contain the true population mean.
97% does not mean that you have a 97% chance that the p that you found is correct.
Answer This Question
Related Questions
 Statistics  It is said that healthy and happy workers are efficient and ...
 Statistics  A company that manufactures exercise machines wanted to know the ...
 Statistics  Among companies doing highway or bridge construction, 80% test ...
 health care  response to the following: Computer technology continues to make ...
 marketing  Your manager has asked you to investigate the Internet marketing ...
 mythology  do the ancient myths provide us with any clues to the rise and fall ...
 Statistics  A consumer agency wanted to investigate if four insurance companies...
 Statistics  A consumer agency wanted to investigate if four insurance companies...
 college  Post a 200300 word response to the following: Computer technology ...
 Statistics  Fortune magazine publishes an annual issue containing info on ...
More Related Questions