Question

A marketing team wishes to evaluate the popularity of a new product in a particular city. A random survey of 500 shoppers indicates that 287 shoppers favor the new product, 123 shoppers dislike the product, and the remaining 90 shoppers have no opinion.

1. What is the variable collected for the study? What type of variable is it?

2. Are the validity conditions to use the theory-based approach met?

3. Construct a 95% confidence interval for the proportion using the theory-based method.

4. Interpret the confidence interval you constructed in part 3).

5. Is the proportion of shoppers who favored the new product significantly different from 0.5?

Answer 1

No, the proportion of shoppers who favored the new product is significantly different from 0.5 because the 95% confidence interval does not include the value 0.5.