PART I
1. Population in the Survey: The population in this survey refers to all families in the
Dominican Republic.
2. Population Parameter Estimated: The population parameter estimated in this survey is
the proportion of families in the Dominican Republic who cannot afford $300 unexpected
expenses without tapping into loans which was 232.
3. Point Estimate for the Parameter: The point estimate for the parameter is the
proportion of the sample that responded they could not afford $300 unexpected expenses
without tapping into loans. In this case, it is:
232
=0. 3437≈ 34.37%
675
∴ the sampler error is 0.3437∨34.37 % approximately
4. Statistic Used to Measure Uncertainty: The statistic used to measure the uncertainty of
the point estimate is the sample error of the proportion (Diez, et al., 2019). The formula
for the sample error of a proportion is:
𝑆𝐸=√
p (1− p)
n
=
√
0.3437 ( 1−0.3437 )
675
≈ 0.018 28
where p is the sample proportion (0.3437 in this case) and 𝑛 is the sample size (675 in
this case). So, the sample error is approximately 0.0183.
5. Impact of True Population Value (40%): If the true population value is 40%, using (p =
0.4) to recompute the SE:
SE = √
p (1− p)
n
=
√
0.4 (1−0.4 )
675
=0.01885
Comparing the two sample errors, the change is minimal, indicating that the resulting
value of the statistic in (4) is robust and would not change significantly if the true
population value were 40% instead of the estimated 34.37%.
PART II
Constructing a 95% Confidence Interval: To construct a 95% confidence interval for the
fraction of viewers who made a visit because of a coupon, we can use the formula:
Confidence Interval (CI)=Point Estimate (p) ± 𝑍(Z_score) × 𝑆𝐸 (Diez, et al., 2019).
Where:
Point Estimate (p) =
Number of viewers who made a visit because of a couponTotal number of viewers
124
≈ 0.2460≈ 24.6 %
504
𝑍(Z_score) value for a 95% confidence interval is approximately 1.96 (for a large
sample size)
SE (Standard Error) is calculated as:
SE= √
p (1− p)
n
=
√0.246 ( 1−0.246 )
504
≈ 0.019184 ≈ 1.92%
Plugging in the values into the confidence interval formula:
Confidence Interval = 0.246 ± (1.96 × 0.019184)
Confidence Interval = 0.246 ± 0.0376
Confidence Interval = 0.246 – 0.0376 ≈ 0.2084
Confidence Interval = 0.246 + 0.0376 ≈ 0.2836
Confidence Interval= (0.208, 0.284)
So, with 95% confidence, we estimate that the true fraction of viewers who made
a visit because of a coupon lies between 20.8% and 28.4%.
References
Diez, D., Cetinkaya-Rundel, M., Barr C. D., & Barr, C. D. (2019). OpenIntro statistics - Fourth
edition. Open Textbook Library.
