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Question No 8.28 8.28 The telephone company wants to estimate
~’J the proportion of households that would purchase
an additional telephone line if it were made available at a
substantially reduced installation cost. A random sample of
500 households is selected. The results indicate that 135 of
the households would purchase the additional telephone line
at a reduced installation cost.
a. Construct a 99% confidence interval estimate for the
population proportion of households that would purch~l:-;e
the additional telephone line.
b. How would the manager in charge ofpromotional programs
concerning residential customers use the results in (a)?
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