SOLUTION: Smallville Bank has 650 checking accounts. A recent sample of 50 of these customers showed 26 have a Visa card with the bank. Construct a 99% or .99 confidence interval for the p

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Question 478988: Smallville Bank has 650 checking accounts. A recent sample of 50 of these customers showed 26 have a Visa card with the bank. Construct a 99% or .99 confidence interval for the proportion of checking account customers who have a Visa account with the bank.

Answer by stanbon(57967) (Show Source):
You can put this solution on YOUR website!
Smallville Bank has 650 checking accounts. A recent sample of 50 of these customers showed 26 have a Visa card with the bank. Construct a 99% or .99 confidence interval for the proportion of checking account customers who have a Visa account with the bank.
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sample proportion: 26/50 = 0.13
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ME = 2.5758*sqrt[0.13*0.87/650] = 0.034
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99% CI: 0.13-0.034 < p < 0.13+0.034
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0.096 < p < 0.164
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Cheers,
Stan H.
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