A Researcher Is Interested in Estimating the Proportion of Adults $0.003 \pm 1.645 \sqrt { ( 0.003 ) ( 0.997 ) / 1000 }$

question 83

Essay

A researcher is interested in estimating the proportion of adults in the U.S. who suffer from a rare form of cancer. In a random sample of 1000 adults in the U.S. she finds that 0.3% suffer from this form of cancer. She then obtains the following 90% confidence interval: $0.003 \pm 1.645 \sqrt { ( 0.003 ) ( 0.997 ) / 1000 }$ or 0.000155 to 0.0058 She concludes that she can be 90% confident that the true proportion of adults in the U.S. suffering from this form of cancer is somewhere between 0.0155% and 0.58%. Is anything wrong with this reasoning? Explain your answer.

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Definitions:

Impairment Loss

A charge recognized when the carrying amount of an asset exceeds its recoverable amount, reflecting a permanent reduction in the asset's value.

Accumulated Depreciation

The total depreciation that has been recorded against an asset over its useful life, representing the reduction in value of the asset.

Cost Model

An accounting method that values an asset based on its historical cost less any accumulated depreciation and impairment losses.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.