Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 9 - Section 9.1 - Assess Your Understanding - Applying the Concepts - Page 438: 44

Answer

Since the traditional method relies on the multiplication of probabilities, it will yield 0 as the result. Hence, we use Agresti and Coull’s method in this case. Lower Bound = 0.04, Upper Bound = 0.326

Work Step by Step

Here x = 0, n = 10, α = 0.05, $z_{0.025} = 1.96$ $\tilde p = \frac{0 + 2}{10+4} = 0.143$ Lower Bound = $0.143 - 1.96 . \sqrt \frac{0.143 (1-0.143)}{10+4} = 0.04$ Upper Bound = $0.143 + 1.96 . \sqrt \frac{0.143 (1-0.143)}{10+4} = 0.326$
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