Question 203685: The number of older consumers in the United States is growing and they are becoming an even bigger economic force. Many feel overwhelmed when confronted with the task of selecting investments, banking services, health care providers, or phone service providers. A telephone survey of 1,900 older consumers found that 27% said they didn’t have enough time to be good money managers (“seniors confused by financial choices – study,” msnbc.com, May 6, 2004).
a) Construct a 95% confidence interval for the population proportion of older consumers that don’t think they have enough time to be good money managers.
b) Interpret the interval in (a)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A telephone survey of 1,900 older consumers found that 27% said they didn’t have enough time to be good money managers (“seniors confused by financial choices – study,” msnbc.com, May 6, 2004).
a) Construct a 95% confidence interval for the population proportion of older consumers that don’t think they have enough time to be good money managers.
p-hat = 0.27
E = 1.96[sqrt(0.27*0.73/1900)] = 0.01983
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95% CI: 0.27-0.01983 < p < 0.27+0.01983
0.2502 <= p <= 0.2898
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b) Interpret the interval in (a)
We are 95% confident that the population proportion is
between 0.2502 and 0.2898
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Cheers,
Stan H.
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