Recently, a Case of Food Poisoning Was Traced to a Particular

question 141

Multiple Choice

Recently, a case of food poisoning was traced to a particular restaurant chain. The source was identified, and corrective actions were taken to make sure that the food poisoning would not reoccur. Despite the response from the restaurant chain, many consumers refused to visit the restaurant for some time after the event. A survey was conducted three months after the food poisoning occurred, with a sample of 319 former customers contacted. Of the 319 contacted, 29 indicated that they would not go back to the restaurant because of the potential for food poisoning. What sample size would be needed in order to be 99 percent confident that the sample proportion is within .02 of ρ, the true proportion of customers who refuse to go back to the restaurant?

• A) 38
• B) 14
• C) 129
• D) 1,777
• E) 1,371

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Definitions:

California Statute

A written law passed by the California Legislature and signed by the governor or passed via the initiative process by voters in the state of California.

Proxy Solicitation

The process of collecting proxies from shareholders to vote on their behalf at a company's shareholder meetings.

Corporate Constituency

The various groups and individuals with interests in a corporation's operations, including shareholders, employees, customers, and the community.

Good Samaritan

A person who provides help or assistance to others in need without any expectation of reward, often protected by laws from liability in emergency situations.