In: Statistics and Probability
Insurance companies are interested in knowing the population percent of drivers who always buckle up before riding in a car. They randomly survey 404 drivers and find that 301 claim to always buckle up. Construct a 91 % confidence interval for the population proportion that claim to always buckle up. Use interval notation, for example, [1,5]
Solution :
Given that,
Point estimate () = x / n = 301 / 404 = 0.745
1 - = 0.255
Z/2 = 1.695
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.695 * (((0.745 * 0.255) / 404)
= 0.037
A 91% confidence interval for population proportion p is ,
- E < p < + E
0.745 - 0.037 < p < 0.745 + 0.037
0.708 < p < 0.782
(0.708, 0.782)