In: Statistics and Probability
Of 150 patients randomly selected by a hospital, 90 of them said that their health insurance was not adequate.
(a) Construct a 99% confidence interval for the proportion of patients who would say that their health insurance was not adequate.
(b) Can we say that more than 50% of all patients of the hospital did not have adequate health insurance? Test at the 1% significance level.
Answer a)
Confidence Interval Calculation
99% confidence interval for the proportion of patients who would say that their health insurance was not adequate is (0.497, 0.703)
Answer b)
(5) Conclusion
It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that more than 50% of all patients of the hospital did not have adequate health insurance, at the 1% significance level