Question

A credit card company would like to estimate the proportion of their customers who have at least $10,000 in credit card debt.

They select a random sample of 50 of their customers and find that 42 of them have at least $10,000 in credit card debt.

They would like to construct a 95% confidence interval for the true proportion of their customers who have at least $10,000 in credit card debt.

Random condition:

10% condition:

Large counts condition:

Are the conditions for inference met?

Answer 1

Random condition: met

10% condition: met

Large counts condition: not met

Are the conditions for inference met: no