Question

You may need to use the appropriate technology to answer this question. According to a research center, 9% of all merchandise sold in a particular country gets returned. A department store in a certain city sampled 80 items sold in January and found that 16 of the items were returned. Construct a point estimate of the proportion of items returned for the population of sales transactions at the store in the given city.

Answer 1

The point estimate for the proportion of items returned at the department store is calculated to be 20%, based on the sample of 80 items where 16 were returned.

Step-by-step explanation:

To construct a point estimate of the proportion of items returned for the population of sales transactions at the department store, we use the sample proportion (p') as the point estimate for the population proportion (p). We calculate the sample proportion by dividing the number of returned items by the total number of items sampled.

The sample proportion of items returned is calculated as follows:

p' = Number of items returned / Total items sampled
p' = 16 / 80
p' = 0.20 or 20%

Therefore, the point estimate for the proportion of items returned in the population of sales transactions at that department store is 20%.