A consumer research center surveyed 427 randomly selected women and found that 29% of them purchase books online. a. What is the number of women in this sample who said that they purchase books online? b. Find a 95% confidence interval estimate of the percentage of all women who purchase books online. c. Can we safely conclude that less than 40% of all women purchase books online? Why or why not? d. Can we safely conclude that at least 25% of all women purchase books online? Why or why not?
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a. 29% of 427 is 124 women buying books online.

b. We have no standard deviation (SD) to work with. The value 1.96 is associated with the 95% confidence interval since the sample size is quite large. If we assume a binomial distribution, we can estimate the SD=√427*0.29*0.71=9.38. In percentages this is a variation from 29% of about 2.2%, so we can quote 29±2.2% as the statistic. 

Now, using 2.2% as the SD, we divide it by √427: 0.11% and apply the confidence coefficient value: 0.11*1.96=0.21% approx.

We use this to give us the margin of error: 29±0.21% as the mean and SD of the percentage of women who buy books online. We have 95% confidence that the number of women lies in this range.

c. We can therefore safely conclude that less than 40% of all women purchase books online, since 40% is much larger than the boundary 29.21% from the confidence interval.

d. We can also fairly safely conclude that at least 28.79% of women purchase books online, so that would cover at least 25%.

 

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