Has Gold Lost its Luster? In 2011, when the Gallup organization polled investors, 34% rated gold the best long-term investment. However, in April of 2013 Gallup surveyed a random sample of U.S. adults. Respondents were asked to select the best long-term investment from a list of possibilities. Only 241 of the 1005 respondents chose gold as the best long-term investment.

• With 95% confidence, compute the margin of error of the sample proportion.
• Compute and describe a 95% confidence interval in the context of the case.
• Do you think opinions about the value of gold as a long-term investment have really changed from the old 34% favorable rate, or do you think this is a sample variability? Explain your answer using the calculated statistics.
• Suppose the Gallup organization wants to offer a new investment option and wants to estimate, to within 5%, the proportion of customers who are likely to make this new investment with 95% confidence. How large a sample do they need?