Answer:
99% Confidence interval: (0.185,0.375)
Step-by-step explanation:
We are given the following in the question:
Sample size, n = 150
Number of cars that have faulty catalytic converters, x = 42
[tex]\hat{p} = \dfrac{x}{n} = \dfrac{42}{150} = 0.28[/tex]
99% Confidence interval:
[tex]\hat{p}\pm z_{stat}\sqrt{\dfrac{\hat{p}(1-\hat{p})}{n}}[/tex]
[tex]z_{critical}\text{ at}~\alpha_{0.01} = \pm 2.58[/tex]
Putting the values, we get:
[tex]0.28\pm 2.58(\sqrt{\frac{0.28(1-0.28)}{150}}) = 0.28\pm 0.095\\\\=(0.185,0.375)[/tex]
The 99% confidence interval for the true proportion of new cars with faulty catalytic converters is (0.185,0.375)