Chapter 8.2, Problem 55E

To determine

To draw: The conclusion for the confidence interval using the provided information using the provided options.

Answer to Problem 55E

The option is (b).

Explanation of Solution

Given:

The proportion of adult that expect to inherit money from the relatives $\left(\widehat{p}\right)$ = 28% = 0.28

Margin of error ( E ) = 3% = 0.03

Formula used:

The formula to compute the confidence interval for population proportion is:

  $\widehat{p}\pm E$

Calculation:

The confidence interval can be computed as follows:

  $\begin{array}{c}CI=\widehat{p}\pm E\\ =0.28\pm 0.03\\ =\left(0.25,0.31\right)\end{array}$

Using the above calculations, it could be said the true population proportion of people that expect to inherit money from the relatives lies between 0.25 and 0.31.

Hence, the correct option is (b).