Press release luxury or necessity

Reference no: EM131821395

The press release "Luxury or Necessity? The Public Makes a U-Turn" (Pew Research Center, April 23, 2009) summarizes results from a survey of a nationally representative sample of n = 1003 adult Americans.

a. One question in the survey asked participants if they think of a landline phone as a necessity or as a luxury that they could do without. Sixty-eight percent said they thought a landline phone was a necessity. Estimate the proportion of adult Americans who view a landline phone as a necessity using a 95% confidence interval.

b. In the same survey, 52% said they viewed a television set as a necessity. Is there convincing evidence that a majority of adult Americans view a television set as a necessity? Test the relevant hypotheses using = .05.

c. The press release also described a survey conducted in 2003. When asked about a microwave oven, 68% of the 2003 sample regarded a microwave oven as a necessity, whereas only 47% of the 2009 sample said they thought a microwave oven was a necessity. Assume that the sample size for the 2003 survey was also 1003. Is there convincing evidence that the proportion of adult Americans who regard a microwave oven as a necessity decreased between 2003 and 2009? Test the appropriate hypotheses using α = .01.

Reference no: EM131821395

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