According to statistics reported on CNBC, a surprising number of motor vehicles are not covered by insurance.

Question

Sample results, consistent with the CNBC report, showed 26 of 181 vehicles were not covered by insurance.

a. What is the point estimate of the proportion of vehicles not covered by insurance (to 4 decimals)?

b. Develop a 90% confidence interval for the population proportion (to 4 decimals).

1. (_,_)

Answer 1

Given

X: 26

N: 181

A. Point estimated = p=x/n= 26/181= 0.1436

B. Lower bound = 0.1026

Upper bound= 0.1937