1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scoray [572]
3 years ago
12

In a survey of 1118 U.S. adults conducted in 2012 by the Financial Industry Regulatory Authority, 810 said they always pay their

credit cards in full each month. Construct a 99.8% confidence interval for the proportion of U.S. adults who pay their credit cards in full each month. Round the answers to three decimal places. A 99% confidence ineral for the proportion of U.S. adults who pay their credit cards in full each month is ____________< p < ________________
Mathematics
1 answer:
marusya05 [52]3 years ago
6 0

Answer:

99.8% confidence:

[0.6833, 0.7656]

99% confidence:

0.6902 < p < 0.7588

Step-by-step explanation:

Lets call p the probability that a U.S adult pay its credit catrd in full each month. Lets call Y the random variable that counts the total of persons that paid their credit card in full from a random sample of 1118 adults. Y is a random variable with distribution Y ≈ Bi(1118,p) . The expected value of Y is μ = 1118*p and its variance is σ² = 1118*p(1-p). The proportion of adults that paid their credit card is a random variable, lets call it X, obtained from Y by dividing by 1118. The expected value is p and the variance is p(1-p)/1118. The Central Limit Theorem states that X can be approximated by a random variable with Normal Distribution, with mean μ = p, and standard deviation σ = √(p(1-p)/1118).

The standarization of X, W, is a random variable with distribution (approximately) N(0,1) obtained from X by substracting μ and dividing by σ. Thus

W = \frac{X - \mu}{\sigma} = \frac{X - p}{\sqrt{\frac{p(1-p)}{1118}}}

If we want a 99.8% confidence interval, then we can find a value Z such that P(-Z < W < Z) = 0.998. If we do so, then P(W < Z) = 0.999, therefore, Ф(Z) = 0.999, were Ф is the cummuative distribution function of the standard normal distribution. The values of Ф can be found on the attached file. We can find that Ф(3.08) = 0.999, thus, Z = 3.08.

We have that P(-3.08 < W < 3.08) = 0.998, in other words

P(-3.08 < \frac{X-p}{\sqrt{\frac{p(1-p)}{1118}}} < 3.08) = 0.998

P(-3.08 * \sqrt{\frac{p(1-p)}{1118}} < X-p < 3.08 * \sqrt{\frac{p(1-p)}{1118}}) = 0.998

P(-X -3.08 * \sqrt{\frac{p(1-p)}{1118}} < -p < -X + 3.08 * \sqrt{\frac{p(1-p)}{1118}}) = 0.998

Taking out the - sign from the -p and reversing the inequalities, we finally obtain

P(X -3.08 * \sqrt{\frac{p(1-p)}{1118}} < p < X + 3.08 * \sqrt{\frac{p(1-p)}{1118}}) = 0.998

As a conclusion, replacing p by its approximation X, a 99.8% confidence interval for p is

[X -3.08 * \sqrt{\frac{X(1-X)}{1118}}\, ,  \, X + 3.08 * \sqrt{\frac{X(1-X)}{1118}}]

replacing X with the proportion of the sample, 810/1118 = 0.7245, we have that our confidence interval is

[0.7245 -3.08 * \sqrt{\frac{0.7245(1-0.7245)}{1118}}\, ,  \, 0.7245 + 3.08 * \sqrt{\frac{0.7245(1-0.7245)}{1118}}]

By solving the fraction and multypling by 3.08, we have

[0.7245 - 0.0411 < p < 0.7245 + 0.0411]

FInally, the 99.8 % confidence interval for p is

[0.6833, 0.7656]

If p is 0.99 (99% confidence), then we would want Z such that Ф(Z) = 0.995, by looking at the table we have that Z is 2.57, therefore the 99% interval for p is

[X -2.57 * \sqrt{\frac{X(1-X)}{1118}}\, ,  \, X + 2.57 * \sqrt{\frac{X(1-X)}{1118}}]

and, by replacing X by 0.7245 we have that  the 99% confidence interval is

[0.6902, 0.7588]

thus, 0.6902 < p < 0.7588

I hope i could help you!

Download pdf
You might be interested in
Which best explains why the equation 7×+3=7×+3 has infinitely many solutions
madreJ [45]
Left and right side are exactly same, therefore "<span>the equation is true for any value of x.</span>"

Option B
4 0
3 years ago
Suppose that the speeds of cars travelling on California freeways are normally distributed with a mean of miles/hour. The highwa
Readme [11.4K]

Answer:

the standard deviation of the speeds of cars travelling on California freeways is 6.0 miles per hour

Step-by-step explanation:

The computation of the standard deviation of the speeds of cars is shown below;

The z score for the top 1% is 2.326

So,

= (75 - 61) ÷ standard deviation = 2.326

Standard deviation is

= 14 ÷ 2.326

= 6.0 miles per hour

Hence, the standard deviation of the speeds of cars travelling on California freeways is 6.0 miles per hour

4 0
3 years ago
A booster club paid for pizzas for an end of season party. They paid $13 for each pepperoni pizza and $11 for each plain pizza.
MaRussiya [10]
11 plain pizzas and 7 pepperoni pizzas
7 0
1 year ago
Luke has 48 books he puts 7 books in a box how many boxes can he fill?? Explain how you interpreted the remainder.
madam [21]
You divide 48 by 7 and you get the remainder of 6.8 . Therefore he can ONLY put 6 books in each box.
3 0
3 years ago
Read 2 more answers
A triangle has a base length of 14cm greater than its height . If the area of the triangle is 48cm^2, find the height of the tri
irga5000 [103]
Area of triangle = base x height /2
48 = (a+14)a/2
a^2 +14a = 96
a^2 + 14a - 96 = 0
Solving for a = 5.04
5 0
3 years ago
Other questions:
  • For a circle of radius 3 feet, find the arc lengths subtended by a central angle of 57 degrees.
    10·2 answers
  • A massage costs $81.50 per hour. How much will a massage for 2.5 hours cost
    11·2 answers
  • 20x-8y=-5 <br> 10x-4y=-4<br><br> Can someone please solve this
    8·1 answer
  • List the common multiples of 3 and 7 up to 70
    13·1 answer
  • -4 1/5 - { -13 1/10}
    15·1 answer
  • What is the minimum value for g(x)=x^2-10x+16? Enter your answer in the box.
    15·1 answer
  • PLEASE HELP!!!
    10·1 answer
  • (24 + 4) ÷ 2 = (24 ÷ 2) + ( __ ÷ 2)<br><br> i dont know this
    15·2 answers
  • Find the elapsed time between 4:16 p.m. and 9:25 p.m.
    8·1 answer
  • What kind of lines have no solution ot a system of equations
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!