In: Statistics and Probability
An environmentalist wants to find out the fraction of oil tankers that have spills each month.
Step 2 of 2:
Suppose a sample of 1344 tankers is drawn. Of these ships, 255 had spills. Using the data, construct the 99% confidence interval for the population proportion of oil tankers that have spills each month. Round your answers to three decimal places.
Solution :
Given that,
n = 1344
x = 255
= x / n =255 /1344 = 0.190
1 - = 1 - 0.190 = 0.810
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z0.005 = 2.576
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 2.576 * (((0.190 * 0.810) / 1344) = 0.028
A 99% confidence interval for population proportion p is ,
- E < P < + E
0.190 - 0.028 < p < 0.190 + 0.028
0.162 < p < 0.218
The 99% confidence interval for the population proportion p is : ( 0.162 , 0.218)