In: Statistics and Probability
Question 6
A random sample of 516 U.S. businesses found that 144 of the 516 businesses had fired workers for misuse of the Internet. A 90% confidence interval for the proportion of all U.S. businesses who have fired workers for misuse of the Internet is between Blank-1 and Blank-2
Solution :
Given that,
n = 516
x = 144
Point estimate = sample proportion = = x / n = 144/516=0.279
1 - = 1-0.279 =0.721
At 90% confidence level
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645 ( Using z table )
Margin of error = E Z/2 *(( * (1 - )) / n)
= 1.645 *((0.279*0.721) / 516)
= 0.0325
A 90% confidence interval for population proportion p is ,
- E < p < + E
0.279- 0.0325< p <0.279+ 0.0325
0.2465< p < 0.3115
The 90% confidence interval for the population proportion p is : 0.2465, 0.3115