Direct mail advertisers send solicitations (junk mail) to thousands of potential customers hoping that some will buy the product. The response rate is usually quite low. Suppose a company wants to...


Direct mail advertisers send solicitations (junk mail) to thousands of potential customers hoping that some will buy the product. The response rate is usually quite low. Suppose a company wants to test the response to a new flyer and sends it to 1,000 randomly selected people. The company gets orders from 123 of the recipients and decides to do a mass mailing to everyone on its mailing list of over 200,000. Create a 95% confidence interval for the percentage of those people who will order something.



May 04, 2022
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