Suppose that 55% of all people prefer Coke to Pepsi. We randomly choose 500 people and ask

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Suppose that 55% of all people prefer Coke to Pepsi. We randomly choose 500 people and ask them if they prefer Coke to Pepsi. What is the probability that our survey will (erroneously) indicate that Pepsi is preferred by more people than Coke? Does this probability increase or decrease as we take larger and larger samples? Why?

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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