Question

11.)During the most recent economic recession, the auto industry relied heavily on 0% financing to entice customers to purchase cars. Research studies estimated that 22.4% of car deals involved 0% financing. A random sample of 500 financed cars deals shows that 98 of them used 0% financing. Construct a 98% confidence level and then select all the statements that apply.

Question 11 options:

The interval lower level is 0.1547

The interval upper level is 0.2375

We can be 98% confident that that the proportion of cars financed with 0% is between 0.155 and 0.237.

The claim made by research that an estimated 22.4% of car deals were 0% financed is supported.

The margin of error for this interval is 0.041

The standard error for the proportion is 0.0178

The sample proportion is 19.6%

Answer 1

Confidence interval calculation for proportion.

ALL the options given are CORRECT.