[0.3105, 0.3695] expect to buy a new car next year.
These are the answer choices -
A) [0.3074, 0.3726]
B) [0.3105, 0.3695]
C) [0.3140, 0.3660]
D) [0.3392, 0.3408]
It is given that a sample of 1,400 American households was asked if they planned to buy a new car next year. Of the respondents, 34% indicated they planned to buy a new car next year.
For large random samples, a confidence interval for a population proportion is given by
[tex]sample proportion[/tex] ± [tex]z * \frac{\sqrt{sample proportion (1 - sample proportion)} }{n}[/tex]
where z* is a multiplier number that comes from the normal curve and determines the level of confidence (see Table 9.1 for some common multiplier numbers).
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