Based on a simple random sample of 2000 college students, it is found that 660 students own a car. We wish to construct a 99% confidence interval to estimate the proportions $p$ of all college students who own a car.
1. Read carefully the text and provide each of the following:
The sample size $n = 2000$
from the sample, the number of college students who own a car is $x = 660$
the confidence level is CL = 99 %.
2. Find the sample proportion $\hat{p} = 0.330$ and $\hat{q} = 1 - \hat{p} = 0.670$
(Round each of your answers to 3 decimal places)
3. Find the critical value $z_{\frac{\alpha}{2}}$ which is the z-score for which the right area is $\frac{\alpha}{2}$.
$z_{\frac{\alpha}{2}} = 2.576$
(Hint: keep in mind that $\alpha = 1 - $the confidence level)