In: Statistics and Probability
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.
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