Statistics: Computing Confidence Intervals – #29017

Question: ANSWER IN % WITH TWO DECIMALS: Will the Volt be successful or go the way of the Oldsmobile and the Pontiac? That is the question the CEOs wants you to evaluate before GM commits funds to design the next generation of Volt and then to increase its production. Therefore, you randomly select 875 car owners looking to buy compact and mid-size GM cars and ask them if they are considering the purchase of a Volt. The results of your survey is 120 of these potential car buyers would consider buying a Volt?

a. Find the 99% confidence interval for the true percentage of all compact and mid-size GM car buyers that would consider buying a volt?

b. When you meet with the CEO after analyzing the answer, what is your answer to the question if GM wants 20% of these potential GM car buyers to consider the purchase of a Volt before the commitment of funds necessary for the program listed in the body of this problem?


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