Question

In: Statistics and Probability

The First National Bank of Wilson has 620 checking account customers. A recent sample of 60...

The First National Bank of Wilson has 620 checking account customers. A recent sample of 60 of these customers showed 28 have a Visa card with the bank. Construct the 95% confidence interval for the proportion of checking account customers who have a Visa card with the bank. (Use z Distribution Table.) (Round your answers to 3 decimal places.)

Confidence interval for the proportion is between and .

Solutions

Expert Solution

Solution :

Given that,

n = 60

x = 28

= x / n = 28 / 60 = 0.467

1 - = 1 - 0.467 = 0.533

At 95% confidence level the z is ,

= 1 - 95% = 1 - 0.95 = 0.05

/ 2 = 0.05 / 2 = 0.025

Z/2 = Z0.05 = 1.960

Margin of error = E = Z / 2 * (( * (1 - )) / n)

= 1.960 * (((0.467 * 0.533 ) / 60)

= 0.126

A 95 % confidence interval for population proportion p is ,

- E < P < + E

0.467 - 0.126 < p < 0.467 + 0.126

0.341 < p < 0.593

The 95% confidence interval for the population proportion p is : ( 0.341 , 0.593)


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