In: Accounting
e.
Q19. ABC Furniture has 1000 employees. Out of a sample
of 50 employees, 40% had requested transfers to Montreal.
Estimate the true percentage of transfer requests
using a level of confidence of 90%.
Conclude your analysis with a sent
Please find below answer
sample size n =50, 40% of 50 = 20, p= 20/50 = 0.40 and q = 1-p = 1-0.40 = 0.60
confidence level =90% = 0.90, α =1-0.90 = 0.10
pvalue = 1- (α /2) = 1-(0.10/2) = 1-0.05 = 0.95
form z score table: Z α/2 = 1.65
Lower limit = =
0.60-1.65.
= 0.60-1.65
=0.60-0.1143 = 0.4857
Upper limit =
p+zα2(p*q)/n =
0.60+1.65
/
= 0.60+1.65
=0.60+0.1143 = 0.7143
Conclusion 0.4857<P<0.7143
“We are at 90% confidence that the population of the people who has asked for transfer request lies between 48.57% to 71.43%