Question

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned. A Houston department store sampled 80 items sold in January and found that 8 of the items were returned. (a) Construct a point estimate of the proportion of items returned for the population ofsales transactions at the Houston store. If required, round your answer to three decimal places.

Answer 1

Answer: 0.1

Explanation:

Given : A Houston department store sampled 80 items sold in January and found that 8 of the items were returned.

In other words, sample size : n=1040

Number of items returned : x= 8

Let p be the proportion of items returned for the population of sales transactions at the Houston store.

As per sample , the sample proportion of items returned for the population of sales transactions at the Houston store is :

`\hat{p}=(x)/(n)=(8)/(80)=0.1`

As we know that , the sample proportion is the best estimate of the population proportion.

Therefore,a point estimate of the proportion of items returned for the population of sales transactions at the Houston store is 0.1.