A credit card company is interested in the proportion of its customers who pay their minimum balance on time. The company randomly sampled 500 records from the previous month. The 95% confidence interval for the true proportion of customers who pay on time was (0.765, 0.835). What are the point estimate and the margin of error for this interval?
Answer
A
The point estimate is 0.765, the margin of error is 0.835.
B
The point estimate is 0.765, the margin of error is 0.07.
C
The point estimate is 0.80, the margin of error is 0.035.
D
The point estimate is 0.80, the margin of error is 0.07.
Explanation
The point estimate is the midpoint of the confidence interval: (0.765 + 0.835) ÷ 2 = 0.80. The margin of error is half the interval’s width: (0.835 − 0.765) ÷ 2 = 0.035. So the point estimate is 0.80 and the margin of error is 0.035.
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