Question

There are 850 employees at a software company. The

company's CEO was interested in finding out if his
employees prefer the new coffee brand provided in the
break rooms or the old coffee brand.
A random sample of 200 employees was conducted, and
148 employees said that they prefer the new coffee
brand over the old one.
The point estimate is calculated using the formula p = x

Answer 1

• The value of x is 148
• The best point estimate of population proportion is 74%

Explanation:

Sample size = n = 200

Number of employees who prefer the new coffee = 148

The formula to calculate the point estimate is:

`p=(x)/(n)`

Here, x is the number of outcomes of our interest i.e. the number of employees who prefer the new coffee brand over the old one. Therefore,

x = 148

Using the values in the above formula, we get the point estimate as:

`p=(148)/(200) \\\\ p=0.74\\\\ p =74\%`

Therefore, the best point estimate for the population proportion is p = 74%

So, the correct statements for this scenario are:

• The value of x is 148
• The best point estimate of population proportion is 74%