In: Statistics and Probability
From a random sample of 1,201 Americans, it was discovered that 1,139 of them lived in neighborhoods with acceptable levels of carbon monoxide. Given the value of p-hat and LaTeX: \sigma σ σp-hat found in the above two questions, and with the knowledge that zLaTeX: _{\frac{\alpha}{2}} α 2 α 2=2.575 for LaTeX: \alpha α α=.005, Construct a 99% confidence interval for the proportion of Americans who live in neighborhoods with acceptable levels of carbon monoxide. Choose the best answer. Group of answer choices ( .897 , .999 ) ( .936 , .960 ) ( .938 , .958 )
( .933 , .963 )
Solution:
Let
denotes the sample proportion.
= x/n = 1139/1201 = 0.948
Our aim is to construct 99% confidence interval.
c = 0.99
= 1 - c = 1- 0.99 = 0.01
/2
= 0.005 and 1-
/2 = 0.995
Search the probability 0.995 in the Z table and see corresponding z value
= 2.575
Now , the margin of error is given by
E =
*
= 2.575 *
[0.948 *(1 - 0.948)/1201] = 0.015
Now the confidence interval is given by
(
- E)
(
+ E)
(0.948 - 0.015)
(0.948 + 0.015)
0.933
0.963
Required 99% Confidence Interval is
(0.933 , 0.963)