In: Statistics and Probability
A 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 498 floppy disks is drawn. Of these disks, 34 were defective. Using the data, construct the 90% confidence interval for the population proportion of disks which are defective. Round your answers to three decimal places.
Solution :
Given that,
n = 498
x = 34
= x / n = 34 /498 = 0.068
1 - = 1 - 0.068= 0.932
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
Z/2 = Z0.05 = 1.645
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.645 * (((0.068 * 0.932) / 498) = 0.019
A 90 % confidence interval for population proportion p is ,
- E < P < + E
0.068 - 0.019 < p < 0.068 + 0.019
0.049 < p < 0.087
The 90% confidence interval for the population proportion p is : ( 0.049 , 0.087)