In 2008 the Better Business Bureau settled 75% of complaintsthey received (USA Today, March 2, 2009). Suppose you have beenhired by the Better Business Bureau to investigate the complaintsthey received this year involving new car dealers. You plan toselect a sample of new car dealer complaints to estimate theproportion of complaints the Better Business Bureau is able tosettle. Assume the population proportion of complaints settled fornew car dealers is .75, the same as the overall proportion ofcomplaints settled in 2008.
Based upon a sample of 450 complaints, what is the probabilitythat the sample proportion will be within .04 of the populationproportion? (Round to four decimal places) Answer
Based upon the smaller sample of only 200 complaints, what isthe probability that the sample proportion will be within .04 ofthe population proportion? (Round to four decimal places)
