Math Problem Statement
From a large number of actuarial exam scores, a random sample of 300 scores is selected, and it is found that 225 of these 300 are passing scores. Based on this sample, find a 95% confidence interval for the proportion of all scores that are passing. Then find the lower limit and upper limit of the 95% 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 find a 95% confidence interval for the population proportion of passing scores, we can use the following formula:
Where:
- = sample proportion =
- is the sample size
- is the Z-value for a 95% confidence level, which is 1.96.
Step 1: Calculate the sample proportion
Step 2: Calculate the standard error (SE)
Step 3: Calculate the margin of error (ME)
Step 4: Calculate the confidence interval
- Lower limit:
- Upper limit:
Final Answers:
- Lower limit:
- Upper limit:
Would you like further clarifications or have any additional questions?
Here are 5 related questions you could explore:
- What happens to the confidence interval if the confidence level is increased to 99%?
- How does sample size impact the width of the confidence interval?
- What is the interpretation of a confidence interval in the context of a population proportion?
- Can we assume normality when constructing confidence intervals for proportions?
- How would the interval change if only 150 scores were passing instead of 225?
Tip: Confidence intervals provide a range of plausible values for a population parameter, but they are not guarantees!
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Math Problem Analysis
Mathematical Concepts
Statistics
Confidence Interval
Proportion
Formulas
Confidence Interval Formula: p̂ ± Z * √(p̂(1 - p̂) / n)
Sample Proportion Formula: p̂ = x / n
Standard Error (SE) Formula: SE = √(p̂(1 - p̂) / n)
Theorems
Central Limit Theorem (for large samples)
Normal Approximation to Binomial Distribution
Suitable Grade Level
Undergraduate
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