A simple random sample of size n=250 individuals who are currently employed is asked if they work at home at least once per week. Of the 250 employed individuals​ surveyed, 41 responded that they did work at home at least once per week. Construct a​ 99% confidence interval for the population proportion of employed individuals who work at home at least once per week.

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Answer:

99% confidence interval for the population proportion of employed individuals is [0.104 , 0.224].

Step-by-step explanation:

We are given that a simple random sample of size n=250 individuals who are currently employed is asked if they work at home at least once per week.

Of the 250 employed individuals​ surveyed, 41 responded that they did work at home at least once per week.

Firstly, the pivotal quantity for 99% confidence interval for the population proportion is given by;

                              P.Q. = [tex]\frac{\hat p-p}{\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex]  ~ N(0,1)

where, [tex]\hat p[/tex] = sample proportion of individuals who work at home at least once per week = [tex]\frac{41}{250}[/tex] = 0.164

           n = sample of individuals surveyed = 250

Here for constructing 99% confidence interval we have used One-sample z proportion statistics.

So, 99% confidence interval for the population proportion, p is ;

P(-2.5758 < N(0,1) < 2.5758) = 0.99  {As the critical value of z at 0.5%

                                             level of significance are -2.5758 & 2.5758}  

P(-2.5758 < [tex]\frac{\hat p-p}{\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < 2.5758) = 0.99

P( [tex]-2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < [tex]{\hat p-p}[/tex] < [tex]2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] ) = 0.99

P( [tex]\hat p-2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < p < [tex]\hat p+2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] ) = 0.99

99% confidence interval for p = [[tex]\hat p-2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] , [tex]\hat p+2.5758 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex]]

= [ [tex]0.164-2.5758 \times {\sqrt{\frac{0.164(1-0.164)}{250} } }[/tex] , [tex]0.164+2.5758 \times {\sqrt{\frac{0.164(1-0.164)}{250} } }[/tex] ]

 = [0.104 , 0.224]

Therefore, 99% confidence interval for the population proportion of employed individuals who work at home at least once per week is [0.104 , 0.224].