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Validate Survey Accuracy with Confidence Intervals

EasyStatistics & Probability00:00
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Problem

Business Context

InsightLoop, a customer analytics company, tracks whether its survey-based satisfaction estimates are accurate enough to support quarterly product decisions. An analyst wants to verify that the latest estimate is statistically reliable before presenting it to leadership.

Problem Statement

A random sample of customers was surveyed, and the analyst observed the share who reported being satisfied. Your task is to assess the accuracy of this analysis using a confidence interval and a hypothesis test against the companys historical benchmark.

Given Data

MetricValue
Total customers surveyed400
Customers reporting satisfaction232
Sample satisfaction rate58.0%
Historical satisfaction benchmark55.0%
Significance level5.0%

Requirements

  1. Compute the sample proportion of satisfied customers.
  2. Construct a 95% confidence interval for the true satisfaction rate.
  3. Test whether the current satisfaction rate is different from the historical benchmark of 55% using a two-sided one-sample proportion z-test.
  4. Report the z-statistic and p-value.
  5. State whether the result is statistically significant at α=0.05\alpha = 0.05α=0.05.
  6. Explain what the interval and test say about the accuracy and decision usefulness of the analysis.

Assumptions

  • The 400 customers were randomly sampled.
  • Each survey response is independent.
  • The normal approximation is appropriate because npnpnp and n(1−p)n(1-p)n(1−p) are both comfortably above 10.
  • Nonresponse bias and survey wording effects are not modeled here.