Question

For this problem, carry at least four digits after the decimal in your calculations. Answers may vary slightly due to rounding.

A random sample of 5000 permanent dwellings on an entire reservation showed that 1683 were traditional hogans.

(a) Let p be the proportion of all permanent dwellings on the entire reservation that are traditional hogans. Find a point estimate for p. (Round your answer to four decimal places.)

(b) Find a 99% confidence interval for p. (Round your answer to three decimal places.)

lower limit
upper limit

Give a brief interpretation of the confidence interval.

1% of all confidence intervals would include the true proportion of traditional hogans.

99% of the confidence intervals created using this method would include the true proportion of traditional hogans.    

99% of all confidence intervals would include the true proportion of traditional hogans.

1% of the confidence intervals created using this method would include the true proportion of traditional hogans.

(c) Do you think that np > 5 and nq > 5 are satisfied for this problem? Explain why this would be an important consideration.

No, the conditions are not satisfied. This is important because it allows us to say that p̂ is approximately normal.

Yes, the conditions are satisfied. This is important because it allows us to say that p̂ is approximately normal.    

Yes, the conditions are satisfied. This is important because it allows us to say that p̂ is approximately binomial.

No, the conditions are not satisfied. This is important because it allows us to say that p̂ is approximately binomial.

Answer 1

a) Point estimate for proportion here is computed as:

b) From standard normal tables, we have:

P( -2.576 < Z < 2.576 ) = 0.99

Therefore the confidence interval here is given as:

This is the required 99% confidence interval for proportion ( rounded to 3 decimal places )

Therefore, 99% of all confidence intervals would include the true proportion of traditional hogans.

c) np = 0.3366*5000 = 1683 and nq = 5000 - 1683 = 3317 which are both greater than 10 and hence both the conditions are satisfied here. Yes, the conditions are satisfied. This is important because it allows us to say that p̂ is approximately normal.