An economist reports that 598 out of a sample of 1, 300 middle-income American h

Question

An economist reports that 598 out of a sample of 1, 300 middle-income American households actively participate in the stock market. Use Table 1. a. Construct the 99% confidence interval for the proportion of middle-income Americans who actively participate in the stock market. (Round intermediate calculations to 4 decimal places. Round "z-value" and final answers to 3 decimal places.) Confidence interval ____ to ____ b. Can we conclude that the proportion of middle-income Americans who actively participate in the stock market is not 50%? Yes, since the confidence interval contains the value 0.5. Yes, since the confidence interval does not contain the value 0.5. No, since the confidence interval contains the value 0.5. No, since the confidence interval does not contain the value 0.5.

Explanation / Answer

x = 598
n = 1300
p = 598/1300 = .46

a. 99% Interval is shown by:

= .46 +/- 2.575*sqrt(.46*.54/1300)
=.424 to .496

b.Yes, we can

Given that .50 is not inside the interval of 99%, we can say that
option B is right

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