Quality Progress reports on improvements in customer satisfaction and loyalty made by Bank of America. Akey measure of customer satisfaction is the response (on a scale from 1 to 10) to the question: “ Considering all the business you do with Bank of America, what is your overall satisfaction with Bank of America?” Here, a response of 9 or 10 represents “customer delight.”
a. Historically, the percentage of Bank of America customers expressing customer delight has been 48%. Suppose that we wish to use the results of a survey of 350 Bank of America customers to justify the claim that more than 48% of all current Bank of America customers would express customer delight. The survey finds that 189 of 350 randomly selected Bank of America customers express customer delight. If, for the sake of argument, we assume that the proportion of customer delight is p =48, calculate the probability of observing a sample proportion greater than or equal to 189 /350=54. That is, calculate P (p ≥ .54).
b. Based on the probability you computed in part a, would you conclude that more than 48 percent of current Bank of America customers express customer delight? Explain.