In economic downturns, companies attempt to downsize their workforces by offering early retirement incentives to older employees. A survey of 723 companies found that
195 engage in such downsizing practices. The 99% confidence interval for the
Proportion of companies that downsize their workforces by offering early retirement
Incentives is
A) 0.19 to 0.35
B) 0.65 to 0.81
C) 0.19 to 0.47
D) 0.69 to 0.77
E) 0.23 to 0.31

Question

Quizplus · Accepted Answer

The proportion of companies offering early retirement incentives is 195/723. Using this proportion, a 99% confidence interval is calculated, resulting in the interval 0.23 to 0.31.

In Economic Downturns, Companies Attempt to Downsize Their Workforces by Offering