SOLUTION: In a recent poll of 1,600 homeowners in the United States, one in eight homeowners reports having a home equity loan that he or she is currently paying off. Using a confidence coef

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Question 1163030: In a recent poll of 1,600 homeowners in the United States, one in eight homeowners reports having a home equity loan that he or she is currently paying off. Using a confidence coefficient of 0.99, derive the interval estimate for the proportion of all homeowners in the United States that hold a home equity loan. (You may find it useful to reference the z table. Round intermediate calculations to at least 4 decimal places. Round "z" value and final answers to 3 decimal places.)

Answer by Boreal(15235) About Me  (Show Source):
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CI interval is z(0.995)*sqrt(p*1-p)/n), where p=0.125 and 1-p=0.875, n is 1600
z=2.576
the interval is 0.0213 on either side of the point estimate, which is 0.125
(0.1037, 1463)