A newsboy purchases papers at 10 cents and sells them at 15 cents. However, he is not allowed to return unsold papers. If his da
ily demand is a binomial random variable with n = 10 , p = 1 3 , approximately how many papers should he purchase so as to maximize his expected profit?
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Answer: B) [-0.0332,0.1332]
Step-by-step explanation: <u>Confidence</u> <u>Interval</u> is an interval where we can be a percentage sure the true mean is.
The confidence interval for a difference in population proportion is calculated following these steps:
First, let's find population proportion for each population:
Second, calculate standard deviation for each proportion:
Now, we calculate standard error for difference:
SE = 0.0505
The z-score for a 90% CI is 1.645.
Then, confidence interval is
± z-score.SE
±
0.05 ± 0.0831
The limits of this interval are:
inferior: 0.05 - 0.0831 =
superior: 0.05 + 0.0831 = 0.1332
The 90% confidence interval for the difference in the population proportion of pit pulls and golden retrievers is .