Recently, a case of salmonella (bacterial) poisoning was traced to a particular brand of ice cream bar,

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Recently, a case of salmonella (bacterial) poisoning was traced to a particular brand of ice cream bar, and the manufacturer removed the bars from the market. Despite this response, many consumers refused to purchase any brand of ice cream bars for some period of time after the event (McClave, personal consulting). One manufacturer conducted a survey of consumers 6 months after the outbreak. A sample of 244 ice cream bar consumers was contacted, and 23 respondents indicated that they would not purchase ice cream bars because of the potential for food poisoning.

a. What is the point estimate of the true fraction of the entire market who refuse to purchase bars 6 months after the out-break?

b. Is the sample size large enough to use the normal approximation for the sampling distribution of the estimator of the binomial probability? Justify your response.

c. Construct a 95% confidence interval for the true proportion of the market who still refuses to purchase ice cream bars 6 months after the event.

d. Interpret both the point estimate and confidence interval in terms of this application.

e. Suppose it is now 1 year after the outbreak of food poisoning was traced to ice cream bars. The manufacturer wishes to estimate the proportion who still will not purchase bars to within .02 using a 95% confidence interval. How many consumers should be sampled?

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Statistics For Business And Economics

ISBN: 9780136855354

14th Edition

Authors: James T. McClave, P. George Benson, Terry T Sincich

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