Consider the following statement.
The Department of Motor Vehicles reports that the proportion of all vehicles registered in a certain
state that are imports is 0.21.
(a) Is the number that appears in boldface in this statement a sample proportion or a population proportion?
(b) Which of the following use of notation is correct, p = 0.21 or p̂ = 0.21?
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(a) The number that appears in boldface in this statement is a population proportion. It represents the proportion of all vehicles registered in the state that are imports.
(b) The correct use of notation is p = 0.21. This notation is used to represent a population proportion. The notation p̂ is used to represent a sample proportion. Since the statement does not mention anything about a sample, it is reasonable to assume that the proportion given is a population proportion.