In: Statistics and Probability
quality-conscious disk manufacturer wishes to know the fraction of disks his company makes which are defective.
Step 2 of 2:
Suppose a sample of 1222 floppy disks is drawn. Of these disks, 1076 were not defective. Using the data, construct the 98%confidence interval for the population proportion of disks which are defective. Round your answers to three decimal places.
Find Upper and Lower Endpoints
Solution :
Given that,
n = 1222
x = 1076
Point estimate = sample proportion = = x / n = 1076 / 1222 = 0.881
1 - = 1 - 0.881 = 0.119
At 98% confidence level the z is ,
= 1 - 98% = 1 - 0.98 = 0.02
/ 2 = 0.02 / 2 = 0.01
Z/2 = Z 0.01 = 2.326
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 2.326 * (((0.881*0.119) / 1222)
= 0.022
A 98% confidence interval for population proportion p is ,
- E < p < + E
0.881 - 0.022 < p < 0.881 + 0.022
0.859 < p < 0.903
Upper Endpoint = 0.903
Lower Endpoint = 0.859