Question

Suppose that a study was carried out in which each person in a random sample of students at a particular college was asked how much money he or she spent on textbooks for the current semester. Would you use these data to estimate a population mean or to estimate a population proportion? How did you decide?

Short answer

Given that the study asks about the amount spent on textbooks, a numerical value, it would be best to use these data to estimate a population mean, not a population proportion. This is because a mean is better suited for numerical data, as it provides a measure of central tendency.

Step-by-step solution

Identify the Type of Data

The first step is to understand the type of data collected. In this exercise, we are given the amount each student has spent on textbooks. This data is numerical, as it can be measured in monetary terms. This is opposed to categorical data, which describes attributes or characteristics, such as a student's major, where they are from, or a yes/no response.

Decide Between Population Mean or Population Proportion

Based on the type of data, we can decide between population mean or population proportion. For categorical data, we'd estimate a population proportion. However, for numerical data, like what we have here, we'd estimate a population mean. This is because a mean gives us a measure of central tendency within numerical data, providing an idea of the 'average' expenditure on textbooks.