An amusement park owner is considering a survey to determine customer preferences for a new water ride. The owner and the researcher discuss the concept of the level of accuracy. The owner accepts a level of accuracy of + 5 percent. Assuming that the survey finds that 70 percent of the survey respondents indicate they want the ride, what does having a level of accuracy of + 5 percent accuracy actually mean?
A) that there will be a 5 percent chance that the owner will make the wrong decision as to whether not to build the new water ride
B) that the real percentage of the park's customers who prefer the new water ride falls between 0 and 5 percent
C) that there is a 95 percent chance that the owner will make the right decision as to whether or not to build the new water ride
D) that the real percentage of the park's customers who prefer the new water ride falls between 65 and 75 percent
E) that there is a 5 percent chance, + or -, that the owner will make the right decision

Question

Quizplus · Accepted Answer

A level of accuracy of + 5 percent means that the actual percentage of customers who prefer the new water ride falls within a range of 65 to 75 percent (i.e., 70 percent ± 5 percent). Therefore, the correct option is D. Option A is incorrect because a level of accuracy does not refer to a probability of making the wrong decision. Option B is incorrect because the range given in the option is incorrect. Option C is incorrect because a level of accuracy does not refer to a probability of making the right decision. Option E is incorrect because it does not correctly describe the meaning of a level of accuracy.

An Amusement Park Owner Is Considering a Survey to Determine