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A survey conducted by the U.S. department of Labor found the 48 out of 500 heads of households were unemployed. Compute a 99% confidence interval for the proportion of unemployed heads of households in the population. Round to three decimal places.

Answer :

SaniShahbaz

Answer:

(0.062, 0.130)

Step-by-step explanation:

Sample size = n = 500

Number of heads that were unemployed = x = 48

Proportion of heads that were unemployed = p = [tex]\frac{x}{n}=\frac{48}{500}=0.096[/tex]

Proportion of heads that were not unemployed = q = 1 - p = 1 - 0.096 = 0.904

Confidence Level = 99%

z-value for 99% confidence level = z = 2.58

The confidence interval about a population proportion is calculated as:

[tex](p-z\sqrt{\frac{pq}{n}} , p+z\sqrt{\frac{pq}{n}})[/tex]

Using the values, we get:

[tex](0.096-2.58\sqrt{\frac{0.096 \times 0.904}{500}},0.096+2.58\sqrt{\frac{0.096 \times 0.904}{500}})\\\\ = (0.062,0.130)[/tex]

Thus, 99% confidence interval for the proportion of unemployed heads of households in the population is (0.062, 0.130)

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