In: Statistics and Probability
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 .
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)