A company that is selling condos in Florida plans to send out an advertisement for the condos to 4000 potential customers, in which they promise a free weekend at a resort on the Florida coast in exchange for agreeing to attend a four-hour sales presentation. The company would like to know how many people will accept this invitation. Its best guess is that there is a 10% chance that any particular customer will accept the offer. The company decides to simulate how small a proportion could actually accept the offer, if this is the case. Simulate this scenario for the company, using the Sampling Distributions applet on the text CD, assuming that the population proportion is 0.10. Refer to Activity 1 for guidance on using the applet.
a. Perform N = 1 simulation for a sample of size 4000. What sample proportion did you get? Why do you not expect to get exactly 0.10?
b. Simulate now N = 10,000 times. Keep the sample size at n = 4000 and p = 0.10. Describe the graph of the 10,000 sample proportion values. Does it seem likely that the sample proportion will fall very close to 0.10?