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In: Statistics and Probability

5. A market research organization takes a simple random sample of 200 households in a town...

5. A market research organization takes a simple random sample of 200 households in a town with 25,000 households. Of the 200 sampled households, 158 report having a video ondemand service like Netflix, Amazon Video, or Hulu.

(a) To answer parts (b) and (c), you need a box model. The box representing the population has a standard deviation that is (circle one) known OR estimated to be (fill in the value) _______________.

(b) The percentage of households in the town with a video on-demand service is estimated as _______________%, and this estimate is likely to be off by about _______________%.

(c) A 90%-confidence interval for the percentage of households in the town with a video ondemand service goes from _______________% to _______________%.

(d) Explain why it's ok to use the normal approximation to answer part (c). Your answer should contain the name of a theorem and one or more numerical comparisons.

(e) TRUE or FALSE (circle one): There is a 90% chance that the true percentage of households in the town with a video on-demand service falls within the interval calculated in (c).

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