The Royal Haciendas Resort in Playa del Carmen, Mexico, is thinking of starting a new promotion. When a customer checks out of the resort after spending 5 or more days, the customer would be given a voucher that is good for 2 free nights on the next stay of 5 or more nights at the resort. The marketing manager is interested in estimating the proportion of customers who return after getting a voucher. From a simple random sample of 100 customers, 62 returned within 1 year after receiving the voucher. Please determine the 95% confidence interval estimate of the true population proportion.

The 95% confidence interval estimate of the true population proportion is (0.5249, 0.7151).

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of , and a confidence level of , we have the following confidence interval of proportions.

In which

z is the zscore that has a pvalue of .

From a simple random sample of 100 customers, 62 returned within 1 year after receiving the voucher.

This means that

95% confidence level

So , z is the value of Z that has a pvalue of , so .

The lower limit of this interval is:

The upper limit of this interval is:

The 95% confidence interval estimate of the true population proportion is (0.5249, 0.7151).

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%