Question 8.144

47. Consumer Sentiment. Refer to Exercise 43.

  1. Compute the margin of error and interpret it.
  2. Describe two ways of reducing this margin of error. Which method is more desirable, and why?

8.2.47

(a) . We can estimate the population mean consumer sentiment for all consumers to within 2 with 95% confidence. (b) Decrease the confidence level or increase the sample size; Increase the sample size; The only way to have both high confidence and a tight interval is to boost the sample size.