Question

300 Las Vegas tourists were asked “How much money did you spend gambling during your vacation?” Results were:

Amount spent gambling	Number of tourists
$0-500	45
$501-999	180
$1,000 or more	75
Total number of tourists surveyed	300

A) What is the point estimate of the proportion that spent “$0-500?”

B) Provide a 95% confidence interval for the proportion that spent “$0-500.”

C) You would like to reduce your margin of error to .03. Would you need to increase or decrease the number of tourists surveyed (assume the confidence level is still 95%)? Why?

Answer 1