TABLE 8-15
A sales and marketing management magazine conducted a survey on salespeople cheating on their expense reports and other unethical conduct. In the survey on 200 managers, managers have caught salespeople cheating on an expense report 58% of the time, working a second job on company time 50% of the time, listing a "strip bar" as a restaurant on an expense report 22% of the time, and giving a kickback to a customer 19% of the time.
-Referring to Table 8-15, it is possible that the 95% confidence interval calculated from the data will not contain the population proportion of managers who have caught salespeople cheating on an expense report.

Question

Quizplus · Accepted Answer

Since the sample size is 200 and the proportion of managers who have caught salespeople cheating on an expense report is 58%, we can calculate the standard error as sqrt[(0.58)(1-0.58)/200] = 0.047. Using a 95% confidence level, we can calculate the margin of error as 1.96(0.047) = 0.092. Therefore, the 95% confidence interval would be [0.488, 0.672]. It is possible that the population proportion could be outside of this interval, meaning that the interval does not contain the true proportion with 95% confidence.

TABLE 8-15 a Sales and Marketing Management Magazine Conducted a Survey on Survey