In 2011, when the Gallup organization polled investors, 34%rated gold the best long-term investment. In April of 2013 Gallupsurveyed a random sample of U.S. adults. Respondents were asked toselect the best long-term investment from a list of possibilities.Only 241 of the 1005 respondents chose gold as the best long-terminvestment. By contrast, only 91 chose bonds.
- Compute the standard error for each sample proportion. Computeand describe a 95% confidence interval in the context of thequestion.
- Do you think opinions about the value of gold as a long-terminvestment have really changed from the old 34% favorability rate,or do you think this is just sample variability? Explain.
- Suppose we want to increase the margin of error to 3%, what isthe necessary sample size?
- Based on the sample size obtained in part c, suppose 120respondents chose gold as the best long-term investment. Computethe standard error for choosing gold as the best long-terminvestment. Compute and describe a 95% confidence interval in thecontext of the question.
- Based on the results of part d, do you think opinions about thevalue of gold as a long-term investment have really changed fromthe old 34% favorability rate, or do you think this is just samplevariability? Explain.
(Please show calculations especially if formatted viaexcel)
