Question

A market researcher wants to estimate the unknown proportion of Americans who use foreign cars. On the basis of a sample 75 residents in a big residential area, it appears that the point estimate of the proportion of residents with a foreign car is 0.45. An estimate of the standard error of this point estimate is 0.05745 0.00330 0.11260

Answer 1

0.05745

Explanation:

We are given the following:

Point estimate of proportion of residents with foreign car or the sample proportion, p' = 0.45

Number of residents or sample space, n = 75

We have the standard error formula given as
`√(p'(1 - p')/n)`

Substituting the values,

standard error =
`√(0.45(1 - 0.45)/75)`

Hence, standard error = 0.05745