Question: Chapter 13: exercise 38 on page 439 (10 marks). Direct mail advertisers send solicitations (a.k.a junk mail to thousands of potential customers in the hope

Chapter 13: exercise 38 on page 439 (10 marks). Direct mail advertisers send solicitations (a.k.a "junk mail" to thousands of potential customers in the hope that some will by the companies products. The acceptance rate is usually quite low. Suppose a company wants to test response to a new flyer, and sends it to 1000 people randomly selected from their mailing list of over 200,000 people. They get orders from 123 of the recipients.

a)help me with creating a 90% confidence interval for the percentage of people the company contacts who may buy something

b)Explain wha this interval means

c)Explain what 90% means

d)The company must decide whether to now it is worth doing a mass mailing. The mailing wont be cost effective unless it produces at least 5% return. What does your confidence interval suggest?

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