A University Planner Wants to Determine the Proportion of Spring

question 6

Short Answer

A university planner wants to determine the proportion of spring semester students who will attend summer school. She surveys 32 current students discovering that 12 will return for summer school.
a.Construct a 90% confidence interval estimate for the proportion of current spring students who will return for summer school.
b.With a 0.95 probability, how large of a sample would have to be taken to provide a margin of error of 3% or less?

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Definitions:

Social Security Tax

A tax paid equally by employee and employer, based on employee’s wages. Most proceeds are used to pay Social Security retirement and Medicare benefits.

Personal Income Tax

A tax levied on individuals or entities based on their income or profits.

Corporate Profits

The surplus income of corporations after all expenses have been met, indicative of corporate health.

Inflationary Gap

Occurs when equilibrium GDP is greater than full-employment GDP.