A Local Pizza Company Is Interested in Estimating the Percentage

question 88

True/False

A local pizza company is interested in estimating the percentage of customers who would take advantage of a coupon offer. To do this, they give the coupon out to a random sample of 100 customers. Of these, 45 actually use the coupon. Based on a 95 percent confidence level, the upper and lower confidence interval limits are approximately 0.3525 to 0.5475.

---

Definitions:

Externality

A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

Efficient Level

The point at which resources are utilized in the most productive way, maximizing output or satisfaction without wasting any resources.

Price Charged

The amount of money demanded by a seller for a product or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to efficient pricing and output levels.