Question

An automotive manufacturer wants to know the proportion of new car buyers who prefer foreign cars over domestic. Step 1 of 2 : Suppose a sample of 2676 new car buyers is drawn. Of those sampled, 642 preferred foreign over domestic cars. Using the data, estimate the proportion of new car buyers who prefer foreign cars. Enter your answer as a fraction or a decimal number rounded to three decimal places.\

Answer 1

The estimate of the proportion of new car buyers who prefer foreign cars is 0.24.

Explanation:

We find the estimate of the proportion from the sample, as it is a large sample.

Suppose a sample of 2676 new car buyers is drawn. Of those sampled, 642 preferred foreign over domestic cars.

So

`\pi = (642)/(2676) = 0.24`

The estimate of the proportion of new car buyers who prefer foreign cars is 0.24.