Question

Strategic business planning is required for the successful transfer of control between generations in family-owned companies. However, a survey of 366 privately held family firms whose annual turnover exceeded one million dollars it was found that 87 had no strategic business plan. Assuming that simple random sampling was employed to determine the sample for the survey, estimate with 95% confidence the proportion of family-owned companies operating without strategic business plans. Give the upper limit only and report your answer correct to three decimal places.

Answer 1

Solution:-

Given that

Here we have to find 95% confidence interval.

from the given data

we have

n = 366, x = 87

Z-critical value for given 95% is 1.96

lower limit = 0.19408

Upper limit = 0.2813

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