Question

A poll was conducted by the marketing department of a video game company to determine the popularity of a new game that was targeted to be launched in three months. Telephone interviews with 1000 young adults were conducted which revealed that 50% said they would purchase the new game. The margin of error was ±4 percentage points. You are 99% confidence that the percentage of the targeted young adults who will purchase the new game is somewhere between 47% and 52%.

Answers

GPT-4o mini
The results of the poll indicate that there is a 99% confidence level that the true percentage of targeted young adults who will purchase the new game is between 47% and 52%. This range is derived from the point estimate of 50% (the proportion of respondents who indicated they would buy the game) and the margin of error of ±4 percentage points.

Here's a breakdown of the findings:

1. **Point Estimate**: 50% of young adults expressed that they would purchase the game.

2. **Margin of Error**: ±4 percentage points suggests that the true proportion can vary by this amount from the point estimate.

3. **Confidence Interval**:
- Lower limit = 50% - 4% = 46%
- Upper limit = 50% + 4% = 54%

However, you mentioned that the confidence interval is between 47% and 52%, which accounts for the margin of error in a more cautious approach.

With a 99% confidence level, this means the company can be highly confident that around 49% to 51% of young adults are likely to purchase the game, while still accounting for potential variability in responses.

This data will assist the marketing department in making informed decisions about the launch strategy for the new game, understanding its potential market demand, and planning production and distribution accordingly.