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A city's Parks Department wants to estimate the percent of city residents who are satisfied with the quality of the...

GMAT Problem-Solving and Data Analysis : (PS_DA) Questions

Source: Prism
Problem-Solving and Data Analysis
Inference from sample statistics and margin of error
MEDIUM
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A city's Parks Department wants to estimate the percent of city residents who are satisfied with the quality of the city's parks. A random sample of \(\mathrm{340}\) city residents were surveyed. Based on the sample, it is estimated that \(\mathrm{57\%}\) of all city residents are satisfied with the parks, with an associated margin of error of \(\mathrm{4.5\%}\). Based on the estimate and associated margin of error, which of the following is the most appropriate conclusion about all city residents?

A

\(4.5\%\) of the residents are satisfied with the parks.

B

It is plausible that between \(52.5\%\) and \(61.5\%\) of the residents are satisfied with the parks.

C

\(57\%\) of the residents are satisfied with the parks.

D

It is plausible that more than \(61.5\%\) of the residents are satisfied with the parks.

Solution

1. TRANSLATE the problem information

  • Given information:
    • Sample of 340 residents surveyed
    • Sample estimate: \(57\%\) satisfied with parks
    • Margin of error: \(4.5\%\)
  • What this tells us: We have a sample statistic (\(57\%\)) that estimates a population parameter, with an associated uncertainty (\(4.5\%\))

2. INFER what margin of error means

  • The margin of error creates a confidence interval around our sample estimate
  • This interval shows the range of plausible values for the true population percentage
  • Formula: \(\mathrm{Confidence\ Interval = Sample\ Estimate ± Margin\ of\ Error}\)

3. Calculate the confidence interval

  • Lower bound = \(57\% - 4.5\% = 52.5\%\)
  • Upper bound = \(57\% + 4.5\% = 61.5\%\)
  • Confidence interval: \([52.5\%, 61.5\%]\)

4. INFER the correct interpretation

  • The interval \([52.5\%, 61.5\%]\) represents all plausible values for the true population percentage
  • We cannot say the exact percentage is \(57\%\) - that's just our sample estimate
  • We cannot say percentages outside this range are plausible

5. APPLY CONSTRAINTS to eliminate incorrect choices

  • Choice A confuses margin of error with the actual percentage satisfied
  • Choice C treats the sample estimate as the exact population value
  • Choice D suggests values outside our confidence interval are plausible
  • Choice B correctly identifies our calculated confidence interval

Answer: B




Why Students Usually Falter on This Problem

Most Common Error Path:

Conceptual confusion about sample vs population: Students often don't distinguish between what the sample shows (\(57\%\) satisfied) and what we can conclude about the entire population. They think the sample percentage IS the population percentage.

This leads them to select Choice C (\(57\%\) of the residents are satisfied) because they interpret the sample result as the definitive answer about all residents.

Second Most Common Error:

Weak TRANSLATE reasoning: Students misunderstand what "margin of error" means, thinking it represents a percentage of people rather than a measure of uncertainty around the estimate.

This may lead them to select Choice A (\(4.5\%\) of the residents are satisfied) because they confuse the margin of error with the actual satisfaction percentage.

The Bottom Line:

This problem tests whether students understand that sample statistics estimate population parameters with uncertainty. The key insight is that margin of error creates a range of plausible values, not a single definitive answer.

Answer Choices Explained
A

\(4.5\%\) of the residents are satisfied with the parks.

B

It is plausible that between \(52.5\%\) and \(61.5\%\) of the residents are satisfied with the parks.

C

\(57\%\) of the residents are satisfied with the parks.

D

It is plausible that more than \(61.5\%\) of the residents are satisfied with the parks.

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