Question

According to Franchise Business review, over 50% of all food franchises earn a profit of less than $50,000 a year. In a sample of 142 casual dining restaurants, 81 earned a profit of less than $50,000 last year.

What is the point estimate of the proportion of casual dining restaurants that earned a profit of less than $50,000 last year? (round to two decimal places) Answer Develop a 95% confidence interval for the proportion of casual dining restaurants that earned a profit of less than $50,000 last year. (round to two decimal places) [Answer , Answer]

Answer 1

a)

The point estimate of the proportion of casual dining restaurants that earned a profit of less than $50,000 last year:

The sample proportion is computed as follows, based on the sample size N=142 and the number of favorable cases X=81:

b)

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