Direct mail advertisers send solicitations to thousands of potential customers

Direct mail advertisers send solicitations (a.k.a. “junk mail”) to thousands of potential customers in the hope that some will buy the company’s product. The acceptance rate is usually quite low. Suppose a company wants to test the response to a new flyer, and sends it to 1000 people randomly selected from their mailing list of over 200,000 people. They get orders from 123 of the recipients. Create a 90% confidence interval for the percentage of people the company contacts who may buy something.