1. An entrepreneur is considering marketing a new game called “Oyster Bay Patrol” in Pismo Beach, Ca. Experience tells this entrepreneur that if more than 10% of the population of an area this size enjoy the game, it will be profitable. To make the appropriate decision, the entrepreneur takes a random sample of 100 Pismo Beach residents and finds that 15 of them enjoy the game. Does this provide sufficient evidence for the marketing of the game? Use an alpha of .01.

How do I do this problem and plug it into my calculator? Please help!

Im not sure what you mean by the alpha part. But just figure out what percent of 100 those 15 people are. so do 15/100 youll get the portion of the population that likes it.

Don't listen to Wizildman:

https://www.easycalculation.com/statistics/population-confidence-interval.php

Confidence level 99%
Sample Size 100
Frequency 15

Your confidence interval is (5.8% to 24.2%)


Or by hand,

x = 15
N = 100

Estimated standard error is: ((x/n) * (1 - (x/n)) / N )^.5

Z-Score for 99% is about 2.326:

Lower limit = (x/N) - (Z-Score)*(Estimated Standard Error) - .5/N
Upper Limit = (x/N) + (Z-Score)*(Estimated Standard Error) + .5/N

This post was edited by RzChaos on Aug 7 2015 07:42pm