TABLE 8-7
After an extensive advertising campaign, the manager of a company wants to estimate the proportion of potential customers that recognize a new product. She samples 120 potential consumers and finds that 54 recognize this product. She uses this sample information to obtain a 95% confidence interval that goes from 0.36 to 0.54.
-Referring to Table 8-7, it is possible that the true proportion of people that recognize the product is not between 0.36 and 0.54.

Question

Quizplus · Accepted Answer

A confidence interval provides a range of values within which the true proportion is likely to fall, but it does not guarantee that the true proportion is within this range. There is still a 5% chance that the true proportion lies outside the interval.

TABLE 8-7 After an Extensive Advertising Campaign, the Manager of a Company