TABLE 8-12
The president of a university is concerned that illicit drug use on campus is higher than the 5% acceptable level. A random sample of 250 students from a population of 2000 revealed that 7 of them had used illicit drug during the last 12 months.
-Referring to Table 8-12, the president can be 90% confident that no more than 5% of the students at the university had used illicit drug during the last 12 months.

Question

Quizplus · Accepted Answer

Using Table 8-12, with a sample size of 250 and 7 students reporting illicit drug use, the one-tailed upper 90% confidence interval is 0.035. This means that we can be 90% confident that the true proportion of students who have used illicit drugs in the last 12 months is no more than 3.5%, which is below the acceptable level of 5%. Therefore, the statement is true.

TABLE 8-12 The President of a University Is Concerned That Illicit Drug