The question as to whether Annual Value Method of property rating is to be established in a large municipality has become critical. Before the Rating Valuer of the Municipality decides whether or not to adopt the method he randomly samples a hundred rate payers in that municipality. Fourty rate payers accept the method and 60 reject it.

i.Find a point estimate of the proportion of all rate payers who favour Annual Value Rating.

i.Estimate the population proportion of all rate payers who favour Annual Value Rating. (Assume, the confidence level is 85%)

i.The Rating Valuer realized that in the process of sampling, there was biasness in the procedure used. As a result, the sample was increased from a hundred rate payers in that municipality to hundred and eighty.