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It has been found that a certain proportion of companies listed in the Stock Exchange report...

  1. It has been found that a certain proportion of companies listed in the Stock Exchange report higher profits than what they actually make. An audit of 200 companies’ accounts showed that 30 companies reported incorrect higher profits.
  1. Identify the variable of interest – be specific in a complete sentence (3pts)
  2. Calculate the statistic for this sample. Also calculate the standard error to be used in a confidence interval.

Use 3 decimal places (3pts)

  1. Calculate a 95% confidence interval by hand for the proportion of companies that report higher profits than their actual profits. (3pts)
  2. Interpret the results of your confidence interval in context of the problem.
Math   Statistics-And-Probability   
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