In: Math
An environmentalist wants to find out the fraction of oil tankers that have spills each month.
Step 2 of 2:
Suppose a sample of 356 tankers is drawn. Of these ships, 246 did not have spills. Using the data, construct the 90% 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 = 356
x = 110 ( have spills each month )
Point estimate = sample proportion = 
 = x / n = 0.309
1 - 
 = 0.691
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
Z
/2
= Z 0.05 = 1.645
Margin of error = E = Z
/ 2 * 
((
* (1 - 
)) / n)
= 1.645 * (((0.309
* 0.691) / 356)
= 0.040
A 90% confidence interval for population proportion p is ,
- E < p < 
 + E
0.309 - 0.040 < p < 0.309 + 0.040
0.269 < p < 0.349
The 90% confidence interval for the population proportion of oil tankers that have spills each month is (0.269 , 0.349)