In: Statistics and Probability
An environmentalist wants to find out the fraction of oil tankers that have spills each month. Step 2 of 2 : Suppose a sample of 292 tankers is drawn. Of these ships, 234 did not have spills. Using the data, construct the 80% confidence interval for the population proportion of oil tankers that have spills each month. Round your answers to three decimal places. Lower endpoint:__________ Upper endpoint:__________
Solution:
Given:
Sample Size = n = 292
Number of ships did not have spills = 234
Then
x = Number of oil tankers that had spills = 292 - 234 = 58
We have to find the proportion of oil tankers that had spills.
Thus sample proportion is given by:
We have to construct the 80% confidence interval for the population proportion of oil tankers that have spills each month.
Formula:
where
For 80% confidence interval
For c = 80% , find area = ( 1 + c) / 2 = ( 1+0.80) / 2 = 1.80 /2 = 0.90
Look in z table for area = 0.9000 or its closest area and find z value:
Area 0.8997 is closest to 0.9000 and it corresponds to 1.2 and 0.08
thus z = 1.28
Thus
Thus
Lower endpoint =
Lower endpoint = 0.169
and
Upper endpoint =
Upper endpoint = 0.229