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 - Vocabulary and Skill Building - Page 436: 15

Answer

Lower Bound of CI: 0.146; Upper Bound of CI: 0.254

Work Step by Step

$x$ = 30, n = 150, 90% confidence i) $\hat{p}$ = $\frac{x}{n}$ = $\frac{30}{150}$ = 0.2 ii) Find $\frac{\alpha}{2}$ $\alpha = 1 - 0.90$ = 0.10 $\frac{0.10}{2}$ = 0.05 iii) The z-score that corresponds to 0.05 is 1.645 iv) Find margin of error E = $z \cdot \sqrt{\frac{\hat{p}(1 - \hat{p})}{n}} = 1.645 \cdot \sqrt{\frac{0.2(0.8)}{150}}$ $\approx$ 0.0537 iv) Find lower bound of CI: $\hat{p}$ - E = 0.2 - 0.0537 = 0.146 v) Find upper bound of CI: $\hat{p}$ + E = 0.2 + 0.0537 = 0.254
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