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Of a group of randomly selected adults:

- 360 identified themselves as manual laborers
- 280 identified themselves as non-manual wage earners
- 250 identified themselves as mid-level managers
- 160 identified themselves as executives

In the survey:

- 295 of manual laborers preferred trucks
- 174 of non-manual wage earners preferred trucks
- 135 of mid-level managers preferred trucks
- 42 of executives preferred trucks

We are interested in finding the 95% confidence interval for the percent of executives who prefer trucks.

1. Which distribution should you use for this problem?

2. Construct a 95% confidence interval.

3. State the confidence interval and interpret this result in regards to the context of the problem.

Answer :

Answer:

We are 95% confident that the percent of executives who prefer trucks is between 19.43% and 33.06%

Step-by-step explanation:

We are given that in a group of randomly selected adults, 160 identified themselves as executives.

n = 160

Also we are given that 42 of executives preferred trucks.

So the proportion of executives who prefer trucks is given by

p = 42/160

p = 0.2625

We are asked to find the 95% confidence interval for the percent of executives who prefer trucks.

We can use normal distribution for this problem if the following conditions are satisfied.

n×p ≥ 10

160×0.2625 ≥ 10

42 ≥ 10 (satisfied)

n×(1 - p) ≥ 10

160×(1 - 0.2625) ≥ 10

118 ≥ 10 (satisfied)

The required confidence interval is given by

[tex]$ p \pm z\times \sqrt{\frac{p(1-p)}{n} } $[/tex]

Where p is the proportion of executives who prefer trucks, n is the number of executives and z is the z-score corresponding to the confidence level of 95%.

Form the z-table, the z-score corresponding to the confidence level of 95% is 1.96

[tex]$ p \pm z\times \sqrt{\frac{p(1-p)}{n} } $[/tex]

[tex]$ 0.2625 \pm 1.96\times \sqrt{\frac{0.2625(1-0.2625)}{160} } $[/tex]

[tex]$ 0.2625 \pm 1.96\times 0.03478 $[/tex]

[tex]$ 0.2625 \pm 0.06816 $[/tex]

[tex]0.2625 - 0.06816, \: 0.2625 + 0.06816[/tex]

[tex](0.1943, \: 0.3306)[/tex]

[tex](19.43\%, \: 33.06\%)[/tex]

Therefore, we are 95% confident that the percent of executives who prefer trucks is between 19.43% and 33.06%

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