John one of the owners of Mi Casa Front Porch Restaurant has

John, one of the owners of Mi Casa Front Porch Restaurant has been working with the Chef, Maria to potentially add a new item to the menu. He sampled 50 of his regular customers and asks them if they would like the new item on the menu, 37 said yes and 13 said no. Determine the sample proportions of customers that would like the new item on the menu and determine the standard error of the proportion. How would this standard error influence John’s decision?

Using the scenario above, identify the standard error of the proportion and determine the impact of the error on potential decision making by Mi Casa Front Porch Restaurant leaders.

What should the company do based on the information calculated?

Solution