Question

In: Statistics and Probability

An insurance company checks police records on 556 accidents selected at random and notes that teenagers...

An insurance company checks police records on 556 accidents selected at random and notes that teenagers were at the wheel in 91 of them. Complete parts ​

a) Construct the​ 95% confidence interval for the percentage of all auto accidents that involve teenage drivers.

Solutions

Expert Solution

Answer:

To determine the 95%confidence interval

Consider,

sample proportion:: 91/556 = 0.165

P =0.165,

q =1-0.165 = 0.84

Now,

Consider


ME = 1.96*sqrt[0.165*0.84/556] = 0.03095

95%Confidence interval is given as foolows

0.165 - 0.03095 < p < 0.165 + 0.03095

0.1341 < p < 0.1960


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