The manager of the dairy section of a large supermarket chose a random sample of 250 egg cartons and found that 30 cartons had at least one broken egg. let p denote the proportion of all cartons which have at least one broken egg. Find a point estimate for p and also construct a 90% confidence interval for p.

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Answer:

The point estimate for p is of 0.12.

The 90% confidence interval for p is 0.0862 < p < 0.1538.

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 z-score that has a p-value of [tex]1 - \frac{\alpha}{2}[/tex].

The manager of the dairy section of a large supermarket chose a random sample of 250 egg cartons and found that 30 cartons had at least one broken egg.

This means that [tex]n = 250, \pi = \frac{30}{250} = 0.12[/tex]

The point estimate for p is of 0.12.

90% confidence level

So [tex]\alpha = 0.1[/tex], z is the value of Z that has a p-value 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}} = 0.12 - 1.645\sqrt{\frac{0.12*0.88}{250}} = 0.0862[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.12 + 1.645\sqrt{\frac{0.12*0.88}{250}} = 0.1538[/tex]

The 90% confidence interval for p is 0.0862 < p < 0.1538.