Question: Question 19

The telephone company wants to estimate the proportion of households that would purchase an additional telephone line if it were made available at a substantially reduced installation cost,

A random sample of 500 households is selected. The results indicate that 135 of the households would purchase the additional telephone line at a reduced installation cost.

a. Set up a 5% confidence interval estimate of the population proportion of households that would purchase the additional telephone line.

b. How would the manager in charge of promotional program concerning residential customers use the results in (a).