Answer :
The 99% confidence interval to estimate the population proportion of items that are defective is (0.0116, 0.1662).
Sample size , n = 90
defective items , x = 8
Sample proportion = x / n
= 8/90 = 0.0889
= 1- 0.0889 =0.9111
At 99% confidence level the z is ,
α = 1 - 0.99 = 0.01 , α/ 2 = 0.01 / 2
= 0.005
Zα/₂ = Z0.005 = 2.576 ( Using z table )
Margin of error Formula, E = Zα/2× (sqrt(((p-hat× (1 - p-hat)) /n)
= 2.575 ×sqrt((0.0889*0.9111) /90 )
E = 0.0773
A 99% confidence interval is
p-hat - E < p < p-hat + E
=> 0.0889 - 0.0773 < p < 0.0889 +0.0773
=> 0.0116 < p< 0.1662
Hence, confidence interval is (0.0116, 0.1662).
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