An Amusement Park Owner Is Considering a Survey to Determine

question 34

Multiple Choice

An amusement park owner is considering a survey to determine customer preferences for a new water ride. The owner and the researcher discuss the concept of the level of accuracy. The owner accepts a level of accuracy of + 5 percent. Assuming that the survey finds that 70 percent of the survey respondents indicate they want the ride, what does having a level of accuracy of + 5 percent accuracy actually mean?

• A) that there will be a 5 percent chance that the owner will make the wrong decision as to whether not to build the new water ride
• B) that the real percentage of the park's customers who prefer the new water ride falls between 0 and 5 percent
• C) that there is a 95 percent chance that the owner will make the right decision as to whether or not to build the new water ride
• D) that the real percentage of the park's customers who prefer the new water ride falls between 65 and 75 percent
• E) that there is a 5 percent chance, + or -, that the owner will make the right decision

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Definitions:

ISO Certification

Conformance with a rigorous set of international quality standards.

Quality Benchmarks

Standards or points of reference against which products, services, and processes are measured to gauge their level of excellence.

Strict Conformity

The rigorous adherence to established rules, norms, or standards within a group or society.

Total Quality Management

Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs.