Question: Direct marketing companies are turning to the Internet for new opportunities. A recent study by Gruppo, Levey, & Co. showed that 73% of all direct marketers conduct transactions on the Internet. Suppose a random sample of 300 direct marketing companies is taken.
a. What is the probability that between 210 and 234 (inclusive) direct marketing companies are turning to the Internet for new opportunities?
b. What is the probability that 78% or more of direct marketing companies are turning to the Internet for new opportunities?
c. Suppose a random sample of 800 direct marketing companies is taken. Now what is the probability that 78% or more are turning to the Internet for new opportunities? How does this answer differ from the answer in part (b)? Why do the answers differ?