Question

According to a survey, only 15% of customers who visited the web site of a major retail store made a purchase. random samples of size 50 are selected. referring to scenario 7-4, 90% of the samples will have less than what percentage of customers who will make a purchase after visiting the web site?

Answer 1

To determine the percentage of customers who will make a purchase after visiting the website, we need to find the upper limit of a confidence interval for the population proportion. The upper limit of the confidence interval is 27%.

Step-by-step explanation:

To determine the percentage of customers who will make a purchase after visiting the website, we need to find the upper limit of a confidence interval for the population proportion. Since the sample proportion is unknown, we can use a normal distribution with the sample size for the calculation.

We know that the sample size is 50, and the proportion of customers who made a purchase is 15%. To find the upper limit of the confidence interval, we need to calculate the margin of error by multiplying the critical value with the standard error of the proportion.

Assuming a 90% confidence level, the critical value is 1.645. The standard error of the proportion can be calculated as the square root of (proportion * (1 - proportion) / sample size). Plugging in the values, we get:

Standard error = √(0.15 * (1 - 0.15) / 50) = 0.073

Margin of error = 1.645 * 0.073 = 0.120

Therefore, the upper limit of the confidence interval is 15% + 12% = 27%.