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1) To determine the percentage of taxpayers who prefer filing tax returns electronically, a survey of 500 taxpayers was conducted by EPIC/ERA, a marketing research firm in Lansing, Michigan.

a) What is the margin of error of this survey?

b) What assumptions are required to find the margin of error?

2) Look at 50 vehicles in a parking lot near you. Count the number that are SUVs. Use any sampling method you like (e.g., the first 50 you see).

a) How many vehicles are SUV?

b) What sampling method did you use?

c) Construct a 95% confidence interval for the true population proportion of the SUV's.

d) What sample size would be needed to ensure an error of +/- 0.025 with 95% confidence?

e) Would the proportion be the same if this experiment were repeated in a university parking lot? Why or why not?

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