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Construct a 95 confidence interval for the proportion of

In a survey of U.S. consumer intentions, 498 families in a random sample of 2500 indicated that they intended to buy a new car within a year. Construct a 95% confidence interval for the proportion of all U.S. families intending a new car purchase.

(a) Answer two ways:

(1) Using the usual formula (8-19).

(2) Using the simplified formula (8-21).

(b) If the sample P had been .40, would the error in (a₂) have been greater?

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