Eugene Gates,Marketing Director of Mansfield Motors Manufacturers,Inc.'s Electrical Division,is leading a study to assess the relative importance of product features.An item on a survey questionnaire distributed to 100 of Mansfield's customers asked them to rate the importance of "ease of maintenance" on a scale of 1 to 10 (with 1 meaning "not important" and 10 meaning "highly important").His staff assembled the following statistics. If Eugene concludes that the average rate of "ease of maintenance" for all customers is 7.5,he is using ________.
A) a range estimate
B) a statistical parameter
C) a point estimate
D) an interval estimate
E) a guesstimate

Question

Eugene Gates,Marketing Director of Mansfield Motors Manufacturers,Inc.'s Electrical Division,is leading a study to assess the relative importance of product features.An item on a survey questionnaire distributed to 100 of Mansfield's customers asked them to rate the importance of "ease of maintenance" on a scale of 1 to 10 (with 1 meaning "not important" and 10 meaning "highly important").His staff assembled the following statistics.  If Eugene concludes that the average rate of "ease of maintenance" for all customers is 7.5,he is using ________.
A) a range estimate 
B) a statistical parameter 
C) a point estimate 
D) an interval estimate 
E) a guesstimate

Quizplus · Accepted Answer

A point estimate is a single, numerical value used to estimate a population parameter. In this case, Eugene is using the average rate of "ease of maintenance" from the sample of 100 customers as an estimate for the average rate of "ease of maintenance" for all customers. This is a point estimate because it is a single, specific number that is being used to estimate the population parameter.