An automobile manufacturer would like to know what proportion of its customers a

Question

An automobile manufacturer would like to know what proportion of its customers are not satisfied with the service provided by their local dealer. The customer service department will survey a random sample of 200 of its customers and compute a 99% confidence interval for the proportion who are not satisfied.

a) The sruvey reveals that 14% of the customers are not satisifed with the service provided by their lcoal dealer. Generate a 99% confidence interval for the proportion who are not satisifed. Make sure to list all assumptions.

b) Interpret the meaning of your confidence interval in this context

Explanation / Answer

a. Here p=0.14 and n=200

z value is 2.58

So E=z*sqrt(p(1-p)/n)=0.06

Hence CI=p+/-E=(0.08,0.2)

b. Population proportion will be in in the range of 0.08 and 0.2

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