A local pizza company is interested in estimating the percentage of customers who would take advantage of a coupon offer. To do this, they give the coupon out to a random sample of 100 customers. Of these, 45 actually use the coupon. At the 95 percent confidence level it would be appropriate for the manager to conclude that possibly as many as 50 percent of his customers will redeem the coupon.

Question

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Given that 45 out of 100 sampled customers used the coupon, the sample proportion is 0.45. At a 95% confidence level, the confidence interval would account for sampling error and could extend to 50% or beyond, depending on the margin of error calculated from the sample proportion and size.

A Local Pizza Company Is Interested in Estimating the Percentage