Create a confidence interval for the percentage of people

Reference no: EM131419857

Direct mail advertisers send solicitations (a.k.a. junk mail ) to thousands of potential customers in the hope that some will buy the company s product. The acceptance rate is usually quite low. Suppose a company wants to test the response to a new flyer, and sends it to 1000 people randomly selected from their mailing list of over 200,000 people. They get orders from 123 of the recipients.

a) Create a 90% confidence interval for the percentage of people the company contacts who may buy something.

b) Explain what this interval means.

c) Explain what 90% confidence means.

d) The company must decide whether to now do a mass mailing. The mailing won't be cost-effective unless it produces at least a 5% return. What does your confidence interval suggest? Explain.

Reference no: EM131419857

Questions Cloud

Problem regarding the internal rate of return : The assignment is to apply IRR (Internal rate of return) and NPV (Net Present Value) to any scenario in your work experience in 550 words or less and submit this above.

What can grocer conclude about opinions of all his customers : He gets responses from 122 customers, of whom 78 oppose the radiation treatments. What can the grocer conclude about the opinions of all his customers?

What elements will software need to support such as catalogs : What key elements will be the software need to support such as catalogs, shopping carts, and transaction processing capabilities? Will there be blogs, file transfers, etc?

Discuss the fundamental purpose of a compliance plan : According the text, the fundamental purpose of a compliance plan is to create an organizational culture that promotes the prevention, identification, and resolution of issues associated with risk. Suggest two (2) main aspects of a management strat..

Create a confidence interval for the percentage of people : Create a 90% confidence interval for the percentage of people the company contacts who may buy something.- Explain what this interval means.

Which function of organizational culture is exemplified : Which function of organizational culture is exemplified here? Which of the following is the least fixed of a person's individual differences? Stimulation is in the ____________ part of Schwartz's model.

Problem regarding the leasing equipment : Suggest one (1) key economic factor that motivates leasing as an option in acquiring an asset. Explain the potential asymmetries that may exist where leasing may be beneficial to both the lessors and the lessee.

Find the margin of error for the poll : Find the margin of error for this poll if we want 95% confidence in our estimate of the percent of American adults who approve of cloning humans.

What is the apr of its nonfree trade credit : If a firm buys under terms of 3/15, net 45 but actually pays on the 20th day and still takes the discount, what is the APR of its nonfree trade credit?

User Account

All Pages