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Question
The manager of the local county fair believes that no more than 30 percent of the adults in the county would object to a fee increase to attend the fair if it meant that better entertainment could be secured. To estimate the true proportion, he has selected a random sample of 200 adults. The manager will use a 90 percent confidence level. Assuming his assumption about the 30 percent holds, the margin of error for the estimate will be approximately .169.
Answer
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A) Since z = 1.1594 < 1.645, do not reject the null hypothesis.
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When developing a confidence interval estimate, the confidence level is calculated based on the size of the sample and the population standard deviation.