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Employees with substance abuse problems. According to the New Jersey Governor鈥檚 Council for a Drug-Free Workplace Report, 50 of the 72 sampled businesses that are members of the council admitted that they had employees with substance abuse problems. At the time of the survey, 251 New Jersey businesses were members of the Governor鈥檚 Council. Use the finite population correction factor to find a 95% confidence interval for the proportion of all New Jersey Governor鈥檚 Council business members who have employees with substance abuse problems. Interpret the resulting interval.

Short Answer

Expert verified

It is 95% confident that, the proportion of all New Jersey Governor Council business members who have employee with substance abuse problem lies in between 0.6028 and 0.7860.

Step by step solution

01

Given information

Let N denotes the business were member of the Governor鈥檚 Council, i.e. N=251

Let x denotes the number of the council admitted that they had employees, i.e. x=50

The sample size is n=72

02

Calculating the Confidence Interval

Since, the proportion of all business were member of the Governor鈥檚 Council business members who have employee with substance abuse problems is,

p^=xn

Therefore,

p^=5072=0.6944

The 95% confidence intervals obtained by using the following formula:

p^2p^1-p^nN-nN=0.694420.69441-0.694472251-72251=0.694420.69440.305672179251=0.694420.00294730.713147=0.69440.0916=0.6028,0.7860

Hence, it is 95% confident that, the true proportion of all New Jersey Governor Council business members who have employee with substance abuse problem lies in between 0.6028 and 0.7860.

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