A marketing research company needs to estimate which of two

A marketing research company needs to estimate which of two medical plans its employees prefer. A random sample of n employees produced the following 95% confidence interval for the proportion of employees who prefer plan A: (0253.0553). Identify the point estimate for estimating the true proportion of employees who prefer that plan.

Solution

We are given that A marketing research company needs to estimate which of two medical plans its employees prefer.

Also we are given that 95% confidence interval for the proportion of employes who pefer plan A is (0.253, 0.553).

The point estimate for estimating the true proportion o employees who prefer that plan is p^.

lower limit = p^ - E = 0.253

upper limit = p^ + E = 0.553

adding these two equations,

p^-E +p^+E = 0.253+0.553

2p^ = 0.806

p^ = 0.806 / 2 = 0.403

So the point estimate of the true proportion is 0.403.