Math Problem Statement

A random sample of 200 individuals working in a large city indicated that 40 are dissatisfied with their working conditions. Based upon this, compute a 99% confidence interval for the proportion of all individuals in this city who are dissatisfied with their working conditions. Then find the lower limit and upper limit of

the 99% confidence interval.

Carry your intermediate computations to at least three decimal places. Round your answers to two decimal places. (If necessary, consult a list of formulas.)

Lower limit:

Upper limit:

Solution

To calculate the 99% confidence interval for the proportion of individuals dissatisfied with their working conditions, follow these steps:

Step 1: Identify the Given Information

  • Sample size (nn) = 200
  • Number of dissatisfied individuals (xx) = 40
  • Confidence level = 99%

Step 2: Calculate the Sample Proportion (p^\hat{p})

The sample proportion p^\hat{p} is calculated as:

p^=xn=40200=0.2\hat{p} = \frac{x}{n} = \frac{40}{200} = 0.2

Step 3: Find the Critical Value (Z)

For a 99% confidence level, the critical value Zα/2Z_{\alpha/2} is approximately 2.576 (from the Z-table).

Step 4: Calculate the Standard Error (SE)

The standard error of the sample proportion is calculated using the formula:

SE=p^(1p^)nSE = \sqrt{\frac{\hat{p}(1 - \hat{p})}{n}}

Substitute the values:

SE=0.2(10.2)200=0.2×0.8200=0.16200=0.00080.0283SE = \sqrt{\frac{0.2(1 - 0.2)}{200}} = \sqrt{\frac{0.2 \times 0.8}{200}} = \sqrt{\frac{0.16}{200}} = \sqrt{0.0008} \approx 0.0283

Step 5: Calculate the Margin of Error (ME)

The margin of error is calculated as:

ME=Zα/2×SE=2.576×0.02830.0729ME = Z_{\alpha/2} \times SE = 2.576 \times 0.0283 \approx 0.0729

Step 6: Calculate the Confidence Interval

Finally, the confidence interval for the population proportion is given by:

Lower limit=p^ME=0.20.07290.1271\text{Lower limit} = \hat{p} - ME = 0.2 - 0.0729 \approx 0.1271

Upper limit=p^+ME=0.2+0.07290.2729\text{Upper limit} = \hat{p} + ME = 0.2 + 0.0729 \approx 0.2729

Final Answer:

  • Lower limit: 0.130.13
  • Upper limit: 0.270.27

This means we are 99% confident that the true proportion of individuals in this city who are dissatisfied with their working conditions lies between 13% and 27%.

Would you like more details or have any other questions? Here are some related questions you might find useful:

  1. How does the sample size affect the confidence interval for proportions?
  2. What are the assumptions for using the Z-distribution in proportion confidence intervals?
  3. How would a different confidence level affect the width of the confidence interval?
  4. How does the observed proportion influence the margin of error?
  5. What are the implications if the confidence interval for the proportion is very wide?

Tip: When calculating confidence intervals for proportions, ensure that both np^n\hat{p} and n(1p^)n(1-\hat{p}) are at least 5 to satisfy the normal approximation conditions.

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Math Problem Analysis

Mathematical Concepts

Statistics
Confidence Interval
Proportions

Formulas

Sample Proportion (\(\hat{p}\))
Standard Error (SE)
Margin of Error (ME)
Confidence Interval Formula

Theorems

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Suitable Grade Level

Advanced High School or College