HighTech Inc. randomly tests its employees about company policies. Last year in the 560 random tests conducted, 26 employees failed the test. Develop a 98% confidence interval for the proportion of applicants that fail the test. (Round your answers to 3 decimal places.)

Respuesta :

Answer:

The 98% confidence interval for the proportion of applicants that fail the test is (0.025, 0.067).

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

For this problem, we have that:

560 random tests conducted, 26 employees failed the test. This means that [tex]n = 560, \pi = \frac{26}{560} = 0.046[/tex]

98% confidence level

So [tex]\alpha = 0.02[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.02}{2} = 0.99[/tex], so [tex]Z = 2.33[/tex].

The lower limit of this interval is:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.046 - 2.33\sqrt{\frac{0.046*0.954}{560}} = 0.025[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.046 + 2.33\sqrt{\frac{0.046*0.954}{560}} = 0.067[/tex]

The 98% confidence interval for the proportion of applicants that fail the test is (0.025, 0.067).