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In 1980 more than 35% of cars purchased had a manual transmission (i.e. stick shift). By 2007 the proportion had decreased to 7.7%. A random sample of college students who owned cars revealed the following: out of 133 cars, 31 had stick shifts. Estimate the proportion of college students who drive sticks with 90% confidence. Use a graphing calculator and round the answers to at least three decimal places. <

Answer :

Answer:

The 90% confidence interval for the proportion of college students who drive sticks is (0.173, 0.293).

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

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

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

A random sample of college students who owned cars revealed the following: out of 133 cars, 31 had stick shifts.

This means that [tex]n = 133, \pi = \frac{31}{133} = 0.233[/tex]

90% confidence level

So [tex]\alpha = 0.1[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.1}{2} = 0.95[/tex], so [tex]Z = 1.645[/tex].

The lower limit of this interval is:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.233 - 1.645\sqrt{\frac{0.233*0.767}{133}} = 0.173[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.233 + 1.645\sqrt{\frac{0.233*0.767}{133}} = 0.293[/tex]

The 90% confidence interval for the proportion of college students who drive sticks is (0.173, 0.293).

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