Chapter 8, Problem 3DHGP

Examine Figure 8.-8, "Coupons: Limited Use."

(a) Use Figure 8-8 to estimate the percentage of merchandise coupons that were redeemed. Also estimate the percentage dollar value of the coupons that were redeemed. Are these numbers approximately equal?

(b) Suppose you are a marketing executive working for a national chain of toy stores. You wish to estimate the percentage of coupons that will be redeemed for the toy stores. How many coupons should you check to be 95% sure that the percentage of coupons redeemed is within 1% of the population proportion of all coupons redeemed for the toy store?

(c) Use the results of part (a) as a preliminary estimate for p. the percentage of coupons that are redeemed, and redo part (b).

(d) Suppose you sent out 937 coupons and found that 27 were redeemed. Explain why you could be 95% confident that the proportion of such coupons redeemed in the future would be between 1.9% and 3.9%.

(cl Suppose the dollar value of a collection of coupons was $10,000. Use the data in Figure 8-8 to find the expected value and standard deviation of the dollar value of the redeemed coupons. What is the probability that between $225 and $275 (out of the $10,000) is redeemed