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# Point estimates and margins of error

According to Thomson Financial, through January 25, 2006, the majority of companies reporting profits had beaten estimates (Business Week, February 6, 2006). A sample of 162 companies showed 104 beat estimates, and 29 fell short.

a. What is the point estimate of the proportion that fell short of estimates ?

b. Determine the margin of error and provide a 95% confidence interval for the proportion that beat estimates.

c. How large a sample is needed if the desired margin of error is .05?

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According to Thomson Financial, through January 25,2006, the majority of companies reporting profits had beaten estimates(Business Week, February 6, 2006). A SAMPLE OF 162 companies showed 104 beat estimates, and 29 fell short.

a. What is the point ...

#### Solution Summary

The following posting helps with problems involving point estimates and margins of error. Calculations involve point estimates, margin of error and sample size.

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