Question

According to Thomson Financial, last year the majority of companies reporting profits had beaten estimates. A sample of 162 companies showed that 94 beat estimates, 29 matched estimates, and 39 fell short.

What is the point estimate of the proportion that fell short of estimates? If required, round your answer to four decimal places.
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Answer 1

The point estimate of the proportion that fell short of estimates is 0.2407.

Step-by-step explanation:

The point estimate of the proportion that fell short of estimates can be calculated by dividing the number of companies that fell short (39) by the total number of companies in the sample (162).

Point estimate = Number of companies that fell short / Total number of companies = 39 / 162 = 0.2407 (rounded to four decimal places).

Therefore, the point estimate of the proportion that fell short of estimates is 0.2407.