An institute reported that 63% of its members indicate that lack of ethical cult

Question

An institute reported that 63% of its members indicate that lack of ethical culture within financial firms has contributed most to the lack of trust in the financial industry. Suppose that you select a sample of 100 institute members. Complete parts (c).

c. The probability is 85% that the sample percentage will be contained within what symmetrical limits of the population percentage? The probability is 85% that the sample percentage will be contained above _______% and below ______%. (Type integers or decimals rounded to one decimal place as needed.)

Explanation / Answer

Ans:

c)confidence level=0.85

alpha=1-0.85=0.15

alpha/2=0.075

z(two tailed)=normsinv(0.075) or normsinv(1-0.075)=+/-1.440

lower limit=0.63-1.440*sqrt(0.63*(1-0.63)/100)=0.560 or 56.0%

upper limit=0.63+1.440*sqrt(0.63*(1-0.63)/100)=0.700 or 70.0%

The probability is 85% that the sample percentage will be contained above 56.0% and below 70.0%

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