A random sample of 205 college students was asked if they believed that places could be haunted, and 65 responded yes. Estimate the true proportion of college students who believe in the possibility of haunted places with 99% confidence. According to Time magazine, 37% of all Americans believe that places can be haunted.
= 65/205 = 0.3171, 1 - = 0.6829, n = 205, = 0.01
The Zcritical (2 tail) for = 0.01, is 2.576
The Confidence Interval is given by ME, where
The Lower Limit = 0.3171 - 0.0837 = 0.2334
The Upper Limit = 0.3171 + 0.0837 = 0.4008
The Confidence Interval is (0.2334 , 0.4008)
The perception of the Americans can be taken as correct as the value of 37% lies withing the 99% confidence interval (23.34% and 40.08%)
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