With the introduction of On-Demand Television, such as Netflix, OSN Play, Shahid, Watch it, etc…, media producers will eventually have to start producing and broadcasting their shows in this new digital standard. Al-Nahar, trying to decide on their own strategy, conducted a poll in major Arabic cities and found that 39 out of 200 households was likely to purchase a streaming service within the next year and a half. (a) Give an estimate and a 90% confidence interval for the true proportion of Arabic households in major cities that are likely to purchase a streaming service over the next year-and-a-half period. (b) Al-Nahar’s strategy is to proceed with a substantial investment in new technology if they are at least 90% confident that the true proportion estimated using their poll is above 17%. Based on this strategy, will Al-Nahar proceed with this investment? (c) Based on this preliminary estimate they wanted to conduct a more extensive poll in order to increase the accuracy of their estimate. (i) What should their sample size be if they wanted to reduce their margin of error by a the factor of two, still at a 90% confidence level? (ii) What should their sample size be if they wanted to estimate the true proportion of Arabic households in major cities that are likely to purchase a streaming service over the next year-and-a-half period to within ±1% with 90% confidence? please, solve this problem in a detailed answer
With the introduction of On-Demand Television, such as Netflix, OSN Play, Shahid, Watch it,
etc…, media producers will eventually have to start producing and broadcasting their shows in this new digital standard. Al-Nahar, trying to decide on their own strategy, conducted a poll in major Arabic cities and found that 39 out of 200 households was likely to purchase a streaming service within the next year and a half.
(a) Give an estimate and a 90% confidence interval for the true proportion of Arabic households
in major cities that are likely to purchase a streaming service over the next year-and-a-half period.
(b) Al-Nahar’s strategy is to proceed with a substantial investment in new technology if they are
at least 90% confident that the true proportion estimated using their poll is above 17%. Based on
this strategy, will Al-Nahar proceed with this investment?
(c) Based on this preliminary estimate they wanted to conduct a more extensive poll in order to
increase the accuracy of their estimate.
(i) What should their
the factor of two, still at a 90% confidence level?
(ii) What should their sample size be if they wanted to estimate the true proportion of
Arabic households in major cities that are likely to purchase a streaming service over the
next year-and-a-half period to within ±1% with 90% confidence?
please, solve this problem in a detailed answer
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