SCENARIO 8-6
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.
-True or False: Referring to Scenario 8-6, this interval requires the assumption that the
distribution of the number of people recognizing the product has a normal distribution.

Question

Quizplus · Accepted Answer

The confidence interval for a proportion does not require the assumption of a normal distribution for the number of people recognizing the product. Instead, it relies on the normal approximation to the binomial distribution, which is valid when the sample size is large enough.

SCENARIO 8-6 After an Extensive Advertising Campaign, the Manager of a Company