Question

Catherine Chao, Director of Marketing Research, is evaluating consumer acceptance of a new toothpaste package. Her staff reports that 17% of a random sample of 200 households prefers the new package to all other package designs. If Catherine concludes that 17% of all households prefer the new package, she is using _______.a) a point estimateb) a range estimatec) a statistical parameterd) an interval estimatee) an exact estimate

Answer 1

Answer:

(a) = a point estimate

Step-by-step explanation:

In point estimation, a single sample statistic is calculated from the sample to provide a best estimate of the true value of the corresponding population parameter. That single relevant statistic is called point estimator and the value of the statistic is called point estimate. In this case, the 17% of a random sample of 200 households that prefers the new package to all other package designs according to the report is a point estimate of the percentage of all households that prefer the new package. Thus, until the next sample of items is drawn and examined, Catherine can actually conclude that 17% of all households prefer the new package.