Chapter 8.3, Problem 20P

Marketing: Bargain Hunters In a marketing survey, a random sample of 1001 supermarket shoppers revealed that 273 always stock up on an item when they find that item at a real bargain price. (See reference in Problem 19.)

(a) Let p represent the proportion of all supermarket shoppers who always stock up on an item when they find a real bargain. Find a point estimate for p.

(b) Find a $95\%$ confidence interval for p Give a brief explanation of the meaning of the interval.

(c) Interpretation As a news writer, how would you report the survey results on the percentage of supermarket shoppers who stock up on real-bargain items? What is the margin of error based on a $95\%$ confidence interval?