A random sample of 85 printers discovered that 35 of them were being used in small businesses. Find the 99% confidence interval for the population proportion of printers that are used in small businesses



Answer :

The 99% confidence interval for the population proportion of printers that are used in small businesses, using the z-distribution, is of:

(0.2743, 0.5493)

What is a confidence interval of proportions?

A confidence interval of proportions has the bounds given by the equation presented next:

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

In which the variables used to calculated these bounds are listed as follows:

  • [tex]\pi[/tex] is the sample proportion, which is also the point estimate of the parameter.
  • z is the critical value of the z-distribution.
  • n is the sample size.

The confidence level is of 99%, hence the critical value z is the value of Z that has a p-value of [tex]\frac{1+0.99}{2} = 0.995[/tex], so the critical value is z = 2.575.

(the critical value can be found either with the z-table or with a z-distribution calculator).

The sample size and the estimate are listed as follows:

[tex]n = 85, \pi = \frac{35}{85} = 0.4118[/tex]

The lower bound of the interval is obtained as follows:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.4118 - 2.575\sqrt{\frac{0.4118(0.5882)}{85}} = 0.2743[/tex]

The upper bound of the interval is obtained as follows:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.4118 + 2.575\sqrt{\frac{0.4118(0.5882)}{85}} = 0.5493[/tex]

More can be learned about the z-distribution at https://brainly.com/question/25890103

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