Developing a confidence interval


Assignment:

The human resources (HR) manager for Gargantua, Incorporated wants to give a short survey to a sample of recent hires (defined as people who have been with the company for less than one year). This sample will include several thousand individuals. The HR manager wants to be able to develop a confidence interval for the proportion of new hires that are happy with the company.

To get the sample, he plans to stand at the door as people are entering and leaving a quarterly employee communications meeting. Whenever he sees someone with a red badge, which indicates less than one year with the company, he will stop that person and give him or her a packet with the survey and instructions.

Critique the HR manager's planned approach and give him advice on how to proceed. You can assume that a reasonable estimate for the proportion of new hires that are happy with the company is .8.

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Basic Statistics: Developing a confidence interval
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