Question

According to Franchise Business Review, over 50% of all food franchises earn a profit of less than $50,000 a year. In a sample of 142 causal dinning restaurants, 81 earned a profit of less than $50,000 last year. (a) What is the point estimate of the proportion of causal dining restaurants that earned a profit of less than $50,000 last year? (b) Determine the margin of error and provide a 95% confidence interval for the proportion of causal dining restaurants that earned a profit of less than $50,000 last year.

          According to Franchise Business Review, over 50% of all food franchises earn a profit of less than $50,000 a year. In a sample of 142 causal dinning restaurants, 81 earned a profit of less than $50,000 last year. (a) What is the point estimate of the proportion of causal dining restaurants that earned a profit of less than $50,000 last year? (b) Determine the margin of error and provide a 95% confidence interval for the proportion of causal dining restaurants that earned a profit of less than $50,000 last year.

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According to Franchise Business Review, over 50% of all food franchises earn a profit of less than $50,000 a year. In a sample of 142 causal dinning restaurants, 81 earned a profit of less than $50,000 last year. (a) What is the point estimate of the proportion of causal dining restaurants that earned a profit of less than $50,000 last year? (b) Determine the margin of error and provide a 95% confidence interval for the proportion of causal dining restaurants that earned a profit of less than $50,000 last year.

Added by Ash K.

Essentials of Modern Business Statistics

David R. Anderson, Dennis J.… 8th Edition

Chapter 8

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Solved by Expert Supreeta N

03/21/2023

Step 1

Given: - Total number of causal dining restaurants in the sample (n) = 142 - Number of causal dining restaurants that earned a profit of less than $50,000 last year (x) = 81 Point estimate = x / n Point estimate = 81 / 142 Point estimate = 0.5704 ** Show more…

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According to Franchise Business Review, over 50% of all food franchises earn a profit of less than $50,000 a year. In a sample of 142 causal dinning restaurants, 81 earned a profit of less than $50,000 last year. (a) What is the point estimate of the proportion of causal dining restaurants that earned a profit of less than $50,000 last year? (b) Determine the margin of error and provide a 95% confidence interval for the proportion of causal dining restaurants that earned a profit of less than $50,000 last year.

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