In January 2002, two students made worldwide headlines by spinning a Belgian euro 250 times and getting 140 heads—that’s 56%. That makes the 90% confidence interval (51%, 61%). What does this mean? Are these conclusions correct? Explain.

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Answer with explanation:

The 90% confidence interval (51%, 61%) for proportion means that the proportion of getting heads lie in it.

Given : Total number of times coin is tossed = 250

Number of times they got head =140

The probability of getting a head = 0.56

The confidence interval for proportion is given by :-

[tex]p\pm z_{\alpha/2}\sqrt{\dfrac{p(1-p)}{n}}[/tex]

Given significance level : [tex]\alpha=1-0.90=0.1[/tex]

Critical value : [tex]z_{\alpha/2}=z_{0.05}=\pm1.645[/tex]

Now, the 90​% confidence interval for proportion will be :-

[tex]0.56\pm (1.645)\sqrt{\dfrac{0.56(1-0.56)}{250}}\approx0.56\pm 0.0516\\\\=(0.56-0.0516,0.56+0.0516)=(0.5084,\ 0.6116)\approx(51\%,\ 61\%)[/tex]

Hence, the given confidence interval is correct.