Question

In a random sucvey of 238 self-employed ind viduals; 34 reported having had their tax returns audited by the Ins in the past year.

(a) Find the 90% confidence interval for the proportion of seif-employed individuals who were audited by the 195 (use 4 decimais)

Answer 1

The 90% confidence interval for the proportion of self-employed individuals who were audited by the IRS in the past year is (0.1299, 0.2101).

Step-by-step explanation:

We can use the following formula to calculate the 90% confidence interval for the proportion:

p ± 1.96√(p(1 - p)/n)

where:

p is the sample proportion

n is the sample size

In this case, p = 34/238 = 0.1427 and n = 238. Plugging these values into the formula, we get:

0.1427 ± 1.96√(0.1427(1 - 0.1427)/238) = 0.1299, 0.2101

Therefore, we are 90% confident that the true proportion of self-employed individuals who were audited by the IRS in the past year is between 0.1299 and 0.2101.