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The U.S. Department of Education reported that in 2007, 67% of students enrolled in college or a trade school within 12 months of graduating from high school, in 2013, a random sample of 160 individuals who graduated from high school 12 months prior was selected. From this sample, 102 students were found to be enrolled in college or a trade school. A.) construct a 90% confidence interval to estimate the actual proportion of students enrolled in college or a trade school within 12 months of graduating from high school in 2013. B.) What is the margin of error for this sample

Answer :

Answer:

a) The 90% confidence interval is [tex]0.575\leq \pi\leq 0.701[/tex]

b) The margin of error is 0.063.

Step-by-step explanation:

We have to construct a 90% confidence interval for the proportion of students enrolled in college or a trade school within 12 months of graduating from high school in 2013.

We have a sample of 160 students, and a proportion of:

[tex]p=X/N=102/160=0.6375[/tex]

The standard deviation is:

[tex]\sigma=\sqrt{\frac{p(1-p)}{N}}=\sqrt{\frac{0.6375*0.3625}{160}}=0.038[/tex]

As the sample size is big enough, we use the z-value as statistic. For a 90% CI, the z-value is z=1.645.

Then, the margin of error is:

[tex]E=z\cdot\sigma=1.645\cdot 0.038=0.063[/tex]

Then, the 90% confidence interval is:

[tex]p-z\cdot \sigma\leq \pi\leq p+z\cdot\sigma\\\\0.638-0.063\leq \pi\leq 0.638+0.063\\\\0.575\leq \pi\leq 0.701[/tex]

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