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The story below shows a flawed survey design: A major telecommunications company sells many communications products, and it has about 15 million subscribers. With
The story below shows a flawed survey design: A major telecommunications company sells many communications products, and it has about 15 million subscribers. With a wide range of products available, about 9 million of its customers have chosen a communications plan with unlimited texting as part of the plan's monthly fee. About 5 million customers have chosen a communications plan that allows the sending and receiving of text messages for a small cost per text message, and about 1 million of the customers subscribe to plans that do not have texting capabilities. To assess interest in a proposed new product, the company sent a text message to a random sample of 6000 of the approximately 14 million current customers who have text message capabilities inviting them to participate in a brief survey. 3250 of those customers responded, and 74% of them expressed a favorable interest in this proposed new product. Conclusion: Since a random sample was used, and since the number of responses was very large, the company decides that this sample was representative of all of its customers and that there must be a very high of level of favorable interest in this new product among all of its customers. Point out one flaw from the story that you notice and BRIEFLY discuss how or why the estimate of "percentage of customers with favorable interest" may be blased due to the flaw, (Answer value: 2 points) Is the following an experiment or an observational study? (Circle one-1 point) "A recent research project examined the association between household income and health." b) Observational Study a) Experiment 3) Is the following an experiment or an observational study? (Circle one- 1 point) "It is believed that a new type of computer chip will perform better than an old type of computer chip. A quality control specialist randomly assigns each of the two types of chips to a large number of computers, and then he compares the average processing speeds for the computers with the old style chips with the average processing speeds for the computers with the new style chips." a) Experiment b) Observational Study
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