A marketing research company needs to estimate which of two soft drinks college students prefer. A random sample of n college students produced the following 98% confidence interval
for the proportion of college students who prefer drink A: (0.384, 0.424). Identify the point estimate for estimating the true proportion of college students who prefer that drink.
Since the interval would be approximately the mean ± 2.33z, why wouldn't it be .404?
The point estimate for estimating the true proportion of college students who prefer drink A can be calculated as the midpoint of the confidence interval.
To find the midpoint, we take the average of the lower and upper bounds of the confidence interval:
Midpoint = (Lower bound + Upper bound) / 2
In this case, the lower bound is 0.384 and the upper bound is 0.424. Plugging these values into the formula, we get:
Midpoint = (0.384 + 0.424) / 2 = 0.804 / 2 = 0.404
Therefore, the point estimate for estimating the true proportion of college students who prefer drink A is 0.404.