An environmentalist wants to find out the fraction of oil tankers that have spills each month. Step 2 of 2 : Suppose a sample of 712 tankers is drawn. Of these ships, 570 did not have spills. Using the data, construct the 99% confidence interval for the population proportion of oil tankers that have spills each month. Round your answers to three decimal places.
Solution :
Given that,
Point estimate = sample proportion = = x / n = 142 / 712 = 0.199
Z/2 = 2.576
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 2.576 * (((0.199 * 0.801) / 712)
= 0.038
A 99% confidence interval for population proportion p is ,
- E < p < + E
0.199 - 0.038 < p < 0.199 + 0.038
0.161 < p < 0.237
(0.161 , 0.237)
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