Question 49·Easy·Inference from Sample Statistics and Margin of Error
A store surveyed a random sample of 100 customers and found that 72% favored a new checkout system, with a margin of error of ±5 percentage points. The store serves about 2,000 customers per week. Based on the survey, which of the following is the best interval estimate for the number of customers per week who favor the new system?
For margin-of-error questions, first build the percentage interval by adding and subtracting the margin from the reported percentage (here, 72% ± 5 gives 67% to 77%). Then convert those percentages to decimals and multiply by the total population (2,000 customers) to turn the proportion interval into a count interval. Finally, match your computed numerical interval to the closest answer choice, watching out for options that either ignore the margin of error or apply it incorrectly (for example, to the total number instead of the percentage).
Hints
Interpret the margin of error
The survey reports 72% with a margin of error of ±5 percentage points. What two percentages does that give you as the low and high ends of the estimate?
Convert from percent to a number of customers
Once you know the lowest and highest possible percentages, how can you use the total of 2,000 customers to estimate the lowest and highest possible numbers of customers who favor the system?
Work in decimals
Change each percentage to a decimal (for example, 67% becomes 0.67). Then multiply each decimal by 2,000 to get the corresponding number of customers.
Desmos Guide
Compute the lower bound in Desmos
In Desmos, type 0.67*2000 and note the output. This represents the smallest likely number of customers per week who favor the new system based on the survey.
Compute the upper bound in Desmos
Then type 0.77*2000 and note the output. This represents the largest likely number of customers per week who favor the new system. Use these two values as the endpoints of the interval and pick the answer choice whose range matches them.
Step-by-step Explanation
Use the margin of error to find the percentage interval
The survey result is 72% with a margin of error of ±5 percentage points.
That means the true percentage of customers who favor the new system is likely between:
- Lower bound:
- Upper bound:
So the estimated proportion of all customers who favor the new system is between 67% and 77%.
Set up the interval for the number of customers
The store serves about 2,000 customers per week.
To turn the percentage interval into a number-of-customers interval, multiply each end of the percentage range (in decimal form) by 2,000:
- Lower bound (as an expression):
- Upper bound (as an expression):
These give the approximate minimum and maximum number of customers who might favor the new system.
Calculate and match to an answer choice
Now compute the bounds:
- Lower bound:
- Upper bound:
So the best interval estimate for the number of customers per week who favor the new system is 1,340 to 1,540.