Statistics
posted by Steven .
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?

The point estimate is an estimate of the population percentage given the sample you are working with.
Percentage = 96/240 = phat
qhat = 1  phat
97% confidence interval means that you have 3% left which is split between two tails. You need to split .03 in half to get .015. Find that value in the body of the ztable and use that value to get the zscore from the margins of the table.
You then calculate the margin of error using, phat, qhat and n along with z. That answer is the number that you add or subtract to p hat value to get the confidence interval.
To get a narrow interval, you can adjust the confidence interval.. ex. 95% gives you a narrower interval. You can also adjust the sample size.
People often confuse the meaning of a 97% confidence interval. It means that if you took many, many samples from the same population and found the percentage, calculated the confidence intervals in each case then 97% of those confidence intervals that you constructed will contain the true population percentage.
You cannot say that there is a 97% chance that this value will be within the 97% or that it represents the true population mean.
Respond to this Question
Similar Questions

Statistics
Fortune magazine publishes an annual issue containing info on Fortune 500 companies. The following data show the six states with the largest number of Fortune 500 companies as well as the number of companies headquartered in those … 
college
Post a 200300 word response to the following: Computer technology continues to make rapid advances. Health care facilities have used computer programs for administrative functions such as payroll and billing. How do health care facilities … 
health care
response to the following: Computer technology continues to make rapid advances. Health care facilities have used computer programs for administrative functions such as payroll and billing. How do health care facilities use electronic … 
Statistics
A consumer agency wanted to investigate if four insurance companies differed with regard to the premiums they charge for auto insurance. The agency randomly selected a few auto drivers who were insured by each of these four companies … 
Statistics
A consumer agency wanted to investigate if four insurance companies differed with regard to the premiums they charge for auto insurance. The agency randomly selected a few auto drivers who were insured by each of these four companies … 
marketing
Your manager has asked you to investigate the Internet marketing strategies used by the company's major competitors. Use the library, the Internet, and any other resources to research competitors and prepare a presentation. Here are … 
mythology
do the ancient myths provide us with any clues to the rise and fall of large companies such as Enron, Exxon and BP. 
Statistics
Among companies doing highway or bridge construction, 80% test employees for substance abuse. A study involves the random selection of 10 such companies. Find the probability that exactly 5 of the 10 companies test for substance abuse. 
Statistics
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. … 
Statistics
It is said that healthy and happy workers are efficient and productive. A company that manufactures exercising machines wanted to know the percentage of large companies that provided onsite health club facilities. A sample of 240 …