Answered: A cell phone company is considering…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

A cell phone company is considering whether to produce a 3rd model of a phone. The company will launch the product if at least 60% of cell phone users will buy the product. One-hundred cell phone users are randomly selected to try models 1, 2, and 3 of the cell phones. Forty-eight of the participants preferred model 3 to models 1 and 2. The company then devised a simulation based on the requirement that 60% of cell phone users will buy the new model. Each bar in the graph shown represents the proportion of people who preferred the new model, each of sample size 100, simulated 100 times Assume the set of data is approximately normal and the company wants to be 95% confident of its results Does the sample proportion obtained from the random sample, 48 out of 100, fall within the margin of error developed from the simulation? Explain your answer. The company decides to continue developing the product even though only 48 out of 100 participants preferred the new model. Describe how the simulation data could be used to support this decision.