A Video Rental Store Wants to Know What Proportion of Its

question 55

Short Answer

A video rental store wants to know what proportion of its customers are under 21 years old. A simple random sample of 500 customers is taken, and 375 of them are under 21. Assume that the true population proportion of customers aged under 21 is 0.68.
What is the probability that the sample proportion will be within 0.03 of the true proportion of customers who are aged under 21?

---

Definitions:

Aggregate Expenditure

The sum of all expenditures within an economy, encompassing spending on goods and services, investment in businesses, government outlays, and the balance of exports minus imports.

Disposable Income

The amount of money a household or individual has available to spend or save after income taxes have been deducted.

Aggregate Demand

The combined requests for goods and services across an economy, factoring in the prevailing price level for a set period.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public needs or are used to produce other goods and services.