Hi, can I get some help with the following problem: The Residential Energy Consu

Question

Hi, can I get some help with the following problem:

The Residential Energy Consumption Survey found in 2001 that 47% ofAmerican households had internet access. A market surveyorganization repeated this study in a certain town with 25,000households, using a simple random sample of 500 households: 239 ofthe sample households had internet access.

a) The percentage of households in the town with internet access isestimated as _____; this estimate is likely to be off by _____ orso. Explain.

b) If possible, find a 95%-confidence interval for the percentageof all 25,000 households with internet access. If this is notpossible, explain why not.

Explanation / Answer

(a) p=239/500 = 47.8% (b) Given =0.05, Z(0.025)=1.96 (check normal table) The 95% CI is p ± Z*p*(1-p)/n --> 0.478 ± 1.96*sqrt(0.478*(1-0.478)/500) --> (0.434, 0.522)

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