Suppose That the Store Chain of Electronics Plus Sells Extended

question 5

Essay

Suppose that the store chain of Electronics Plus sells extended warranties to 20% of
customers who purchase electronic devices. A local Seattle store samples 300 customers
from their data base.
A. What proportion of customers would they expect to have purchased extended
warranties?
b. What is the standard deviation of the sample proportion?
c. What shape would you expect the sampling distribution of the proportion to have?
d. Would you be surprised to find out that in a sample of 300, 40 of the customers
purchased extended warranties? Explain. What might account for this high percentage?

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Definitions:

Data

Facts and statistics collected together for analysis but not necessarily organized in a manner that gives them meaning.

Standard Deviation

A measurement tool for evaluating the dispersion or spread among a series of data.

Data

Facts and statistics collected together for reference or analysis, serving as the basis for scientific inquiry, decision making, or computational processes.

Sum of Squared Scores

The sum of the squared differences between each observation and the mean, used in various statistical methods.