28 randomly picked people were asked if they rented or owned their own home, 20 said they rented. Obtain a point estimate of the proportion of home owners and round the point estimate to the nearest thousandth
phat = 8/28 = 0.286
To obtain a point estimate of the proportion of homeowners, we need to calculate the sample proportion of homeowners, which is the number of homeowners divided by the total number of people surveyed.
Given that 28 people were surveyed and 20 of them said they rented, we can calculate the number of homeowners by subtracting the number of renters from the sample size:
Number of homeowners = Total number of people surveyed - Number of people who rented
Number of homeowners = 28 - 20
Number of homeowners = 8
Now, we can calculate the sample proportion of homeowners:
Sample proportion of homeowners = Number of homeowners / Total number of people surveyed
Sample proportion of homeowners = 8 / 28
Sample proportion of homeowners ≈ 0.286
Rounding the point estimate to the nearest thousandth, the point estimate of the proportion of homeowners is approximately 0.286.