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Cybersecurity survey. Refer to the State of Cybersecurity (2015) survey of firms from around the world, Exercise 1.20 (p. 50). Recall that of the 766 firms that responded to the survey, 628 (or 82%) expect to experience a cyberattack (e.g., a Malware, hacking, or phishing attack) during the year. Estimate the probability of an expected cyberattack at a firm during the year with a 90% confidence interval. Explain how 90% is used as a measure of reliability for the interval.

Short Answer

Expert verified

The 90% confidence interval for p is 0.7971,0.8429.

Step by step solution

01

Given information

Referring to the State of Cybersecurity (2015) survey of firms from around the world, exercise 1.20, 766 firms that responded to the survey, 628 expect to experience a cyberattack.

02

Finding the 90% confidence interval

The point estimatep^ of the population proportion p is obtained below,

p^=Xn=628766=0.8198p^0.82

The mean of the sampling distribution ofp^ is p.

p^is an unbiased estimator of p.

The mean of the sampling distribution ofp^ is,

p^=p^=0.82

The standard deviation of the sampling distribution ofp^ is,

p^=p1-pn=0.820.18766=0.000193=0.0139

Therefore, the sampling distribution ofp^ follows N0.82,0.0139.

Large-sample confidence interval for p is,

p^z2p^q^n=p^-z2p^q^n,p^+z2p^q^n=0.82-1.6450.0139,0.82+1.6450.0139=0.82-0.0229,0.82+0.0229=0.7971,0.8429

Therefore, the 90% confidence interval for p is 0.7971,0.8429.

There is 90% chance that the true population proportion for cyberattack belongs to the confidence interval 0.7971,0.8429.

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Most popular questions from this chapter

Customers who participate in a store鈥檚 free loyalty card program save money on their purchases but allow the store to keep track of their shopping habits and potentially sell these data to third parties. A Pew Internet & American Life Project Survey (January 2016) revealed that half (225) of a random sample of 250 U.S. adults would agree to participate in a store loyalty card program, despite the potential for information sharing.

a. Estimate the true proportion of all U.S. adults who would agree to participate in a store loyalty card program, despite the potential for information sharing.

b. Form a 90% confidence interval around the estimate, part a.

c. Provide a practical interpretation of the confidence interval, part b. Your answer should begin with, 鈥淲e are 90% confident . . .鈥

d. Explain the theoretical meaning of the phrase, 鈥淲e are 90% confident.鈥

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a. Define the population of interest in the survey.

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e. Explain what the phrase 鈥90% confidence鈥 means for this interval.

f. Compute the sample size necessary to estimate the true proportion to within .05 using a 90% confidence interval.

Suppose you wish to estimate the mean of a normal population

using a 95% confidence interval, and you know from prior information that21

a. To see the effect of the sample size on the width of the confidence interval, calculate the width of the confidence interval for n= 16, 25, 49, 100, and 400.

b. Plot the width as a function of sample size non graph paper. Connect the points by a smooth curve and note how the width decreases as nincreases.

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