You have reviewed Royal Theater’s potential legal liability. Mr. Plex seeks additional
guidance. With respect to surveying moviegoers, Mr. Plex wants advice on how a survey
could be conducted and how the data will be analyzed once it is collected. After
considering the survey design issue, your firm provided Mr. Plex with guidance on the
survey design and the costs associated with conducting a random sampling of
moviegoers. After reviewing the information provided by your firm, Mr. Plex and the
consortium decided to have your firm randomly sample 100 patrons and analyze the
results. The sample revealed that 6 out of the 100 patrons surveyed agreed with Tommy
and resented the ads.
2. In light of this result, what course of action should the consortium adopt? Justify your
conclusion by applying a statistical evaluation of the accuracy of your result?
4. Would your answer to Question 2 change if, instead, 300 patrons had been randomly
surveyed and 18 out of the 300 patrons agreed with Tommy and resented the ads?
Explain?
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