Problem

In a survey of 2973 adults, 1412 say they have started paying bills online in the last year. Construct a $99 \%$ confidence interval for the population proportion. Interpret the results. A $99 \%$ confidence interval for the population proportion is $(\square, \square)$.

Solution

Step 1 :Given that in a survey of 2973 adults, 1412 say they have started paying bills online in the last year. We are asked to construct a $99 \%$ confidence interval for the population proportion.

Step 2 :To construct a confidence interval for a population proportion, we can use the formula: \(\hat{p} \pm Z \sqrt{\frac{\hat{p}(1-\hat{p})}{n}}\), where \(\hat{p}\) is the sample proportion, \(n\) is the sample size, and \(Z\) is the Z-score corresponding to the desired level of confidence.

Step 3 :In this case, \(\hat{p} = \frac{1412}{2973}\), \(n = 2973\), and \(Z\) is the Z-score for a $99\%$ confidence interval, which is approximately $2.576$.

Step 4 :Substituting these values into the formula, we get the confidence interval for the population proportion.

Step 5 :The lower limit of the confidence interval is calculated as: \(0.475 - 2.576 \times \sqrt{\frac{0.475 \times (1-0.475)}{2973}} \approx 0.451\)

Step 6 :The upper limit of the confidence interval is calculated as: \(0.475 + 2.576 \times \sqrt{\frac{0.475 \times (1-0.475)}{2973}} \approx 0.499\)

Step 7 :So, the confidence interval for the population proportion is approximately \((0.451, 0.499)\). This means that we are $99\%$ confident that the true population proportion of adults who have started paying bills online in the last year is between $45.1\%$ and $49.9\%$.

Step 8 :Final Answer: The $99 \%$ confidence interval for the population proportion is approximately \(\boxed{(0.451, 0.499)}\).

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Source: https://solvelyapp.com/problems/rwMJwQ4Rdq/

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