A sales and marketing management magazine conducted a survey

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, 58% of the managers have caught salespeople cheating on an expense report, 50% have caught salespeople working a second job on company time, 22% have caught salespeople listing a \"strip bar\" as a restaurant on an expense report, and 19% have caught salespeople giving a kickback to a customer.

True or False: It is possible that the 95% confidence interval calculated from the data will not contain the sample proportion of managers who have caught salespeople cheating on an expense report. Explain/show how you obtain your answer.

True or False: 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. Explain/show how you obtain your answer.

Solution

False. Confidence Interval contains population proportion, not sample proportion.

True. There is 95% confidence that confidence Interval will contain population proportion. There is still 5% chance that it does not contain true proportion.