Question

I worked this problem from a similar post that was already submitted, specifically I am looking for help with section "C-E" below that I placed in bold. If you can help me with C I can probably figure the rest out. Thank you!

In 2011, when the Gallup organization polled investors, 34% rated gold the best long-term investment. But in April of 2013 Gallup surveyed a random sample of U.S. adults. Respondents were asked to select the best long-term investment from a list of possibilities. Only 241 of the 1005 respondents chose gold as the best long-term investment. By contrast, only 91 chose bonds.

1. Compute the standard error for each sample proportion. Compute and describe a 95% confidence interval in the context of the question.
2. Do you think opinions about the value of gold as a long-term investment have really changed from the old 34% favorability rate, or do you think this is just sample variability? Explain.
3. Suppose we want to increase the margin of error to 3%, what is the necessary sample size?
4. Based on the sample size obtained in part c, suppose 120 respondents chose gold as the best long-term investment. Compute the standard error for choosing gold as the best long-term investment. Compute and describe a 95% confidence interval in the context of the question.
5. Based on the results of part d, do you think opinions about the value of gold as a long-term investment have really changed from the old 34% favorability rate, or do you think this is just sample variability? Explain.

Answer 1

The sample proportion is

(d)

(d)

(e)

Since confidence interval dose not contain 0.34 so it seems that opinions about the value of gold as a long term investment have really changed from old 34% favorabillty rate.