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    Statistics: Confidence Interval and Decision Making

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    Tourism is one consideration for CoffeeTime's future. A survey of 1,233 visitors to Mumbai last year revealed that 110 visited a small café. Use a 0.05 significance level to test her claim. Would it be wise for her to use that claim in trying to convince management to increase their advertising spending to travel agents? Explain in detail.

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    Solution Preview

    Please see the attached file.

    The proportion of tourists who visited the café = 110/1,233 = 0.0892.

    From this we can calculate the standard error as ...

    Solution Summary

    This solution shows how to calculate the confidence interval so that with 95% confidence the employee can claim a certain minimum percentage of tourists visit a small cafe.