In: Statistics and Probability
A quality-conscious disk manufacturer wishes to know the fraction of disks his company makes which are defective.
Step 2 of 2:
Suppose a sample of 1996 floppy disks is drawn. Of these disks, 319 were defective. Using the data, construct the 99% confidence interval for the population proportion of disks which are defective. Round your answers to three decimal places.
Solution :
Given that,
n = 1996
x = 319
= x / n = 319 /1996 = 160
1 - = 1 - 0.160= 0.0.840
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z0.005 = 2.576
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 2.576 * (((0.160 * 0.840) / 1996) = 0.021
A 99 % confidence interval for population proportion p is ,
- E < P < + E
0.160 - 0.021 < p < 0.160 + 0.021
0.139 < p < 0.181
The 99% confidence interval for the population proportion p is : ( 0.139 , 0.181)