The Occupational Safety & Health Administration requires companies that handle hazardous chemicals to complete material safety data sheets (MSDS). These MSDS have been criticized for being too hard to understand and complete by workers. A study of 150 MSDS revealed that only 12% were satisfactorily completed. (Chemical & Engineering News, Feb. 7, 2005.)

Give a 98% confidence interval for the true percentage of MSDS that are satisfactorily completed.

Respuesta :

Answer:

98% confidence interval for the true percentage of MSDS that are satisfactorily completed is [0.058 , 0.182].

Step-by-step explanation:

We are given that a study of 150 MSDS revealed that only 12% were satisfactorily completed.

Firstly, the Pivotal quantity for 98% confidence interval for the population proportion is given by;

                               P.Q. =  [tex]\frac{\hat p-p}{\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex]  ~ N(0,1)

where, [tex]\hat p[/tex] = sample proportion of MSDS that were satisfactorily completed = 12%

           n = sample of MSDS = 150

           p = true percentage of MSDS

Here for constructing 98% confidence interval we have used One-sample z test for proportions.

So, 98% confidence interval for the true percentage, p is ;

P(-2.33 < N(0,1) < 2.33) = 0.98  {As the critical value of z at 1% level

                                                    of significance are -2.33 & 2.33}  

P(-2.33 < [tex]\frac{\hat p-p}{\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < 2.33) = 0.98

P( [tex]-2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < [tex]{\hat p-p}[/tex] < [tex]2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] ) = 0.98

P( [tex]\hat p-2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] < p < [tex]\hat p+2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] ) = 0.98

98% confidence interval for p =

[ [tex]\hat p-2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] , [tex]\hat p+2.33 \times {\sqrt{\frac{\hat p(1-\hat p)}{n} } }[/tex] ]

= [ [tex]0.12-2.33 \times {\sqrt{\frac{0.12(1-0.12)}{150} } }[/tex] , [tex]0.12+2.33 \times {\sqrt{\frac{0.12(1-0.12)}{150} } }[/tex] ]

= [0.058 , 0.182]

Therefore, 98% confidence interval for the true percentage of MSDS that are satisfactorily completed is [0.058 , 0.182].