Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 174

Sample Evaluation. The National Football League (NFL) is interested in determining whether the average age of its fan base is less than 35 years of age to identify this demographic for potential advertisers. Following are the results for three different stadiums for fans attending an NFL game on a given weekend. In all cases, assume a sampling risk of 5 percent.

Required:
a. Construct a precision interval for each of these samples.
b. Given the sampling risk of 5 percent, provide a single-sentence summary of the results to the NFL for each sample.
c. What is your basic conclusion regarding each sample?
d. If the NFL increased its acceptable level of sampling risk, how would that affect the precision interval and your conclusions? If they decreased the acceptable level of sampling risk, how would that affect the precision interval and your conclusions? Why?