In a random sample of students who took the SAT test, 427 had paid for coaching courses and the remaining 2733 had not. Calculate the 95% confidence interval for the proportion of students who get coaching on the SAT .

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Answer:

The 95% confidence interval for the proportion of students who get coaching on the SAT is (0.1232, 0.147).

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].

427 had paid for coaching courses and the remaining 2733 had not.

This means that [tex]n = 427 + 2733 = 3160, \pi = \frac{427}{3160} = 0.1351[/tex]

95% confidence level

So [tex]\alpha = 0.05[/tex], z is the value of Z that has a p-value of [tex]1 - \frac{0.05}{2} = 0.975[/tex], so [tex]Z = 1.96[/tex].

The lower limit of this interval is:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.1351 - 1.96\sqrt{\frac{0.1351*0.8649}{3160}} = 0.1232[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.1351 + 1.96\sqrt{\frac{0.1351*0.8649}{3160}} = 0.147[/tex]

The 95% confidence interval for the proportion of students who get coaching on the SAT is (0.1232, 0.147).

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