Question

Direct mail advertisers send solicitations​ ("junk mail") to thousands of potential customers in the hope that some will buy the​ company's product. The response rate is usually quite low. Suppose a company wants to test the response to a new flyer and sends it to 1040 people randomly selected from their mailing list of over​ 200,000 people. They get orders from 137 of the recipients. Use this information to complete parts a through d. ​a) Create a 95 ​% confidence interval for the percentage of people the company contacts who may buy something. left parenthesis nothing % comma nothing % right parenthesis ​(Round to one decimal place as​ needed.)

Statistics

Answer 1

Given that, n = 1040 and x = 137

=> sample proportion = 137/1040 = 0.1317

A 95% confidence level has significance level of 0.05 and critical value is,

The 95% confidence interval for the population proportion is,

Therefore, a 95 ​% confidence interval for the percentage of people the company contacts who may buy something (11.1%, 15.2%).