Probabilities and Confidence
1. An important issue facing Americans is the large number
of medical malpractice lawsuits and the expenses that they generate. In a study
of 1228 randomly selected medical malpractice lawsuits, it is found that 856 of
there were later dropped or dismissed (based on data from the Physician
Insurers Association of America).
a) Construct a 99% confidence interval estimate of the
proportion of medical malpractice lawsuits that are dropped or dismissed.
b) Does it appear that the majority of such suits are
dropped or dismissed?
2. A recent Gallup poll consisted of 1012 randomly selected
adults who were asked whether “cloning of humans should or should not be
allowed.” Results showed that 89% of those surveyed indicated that cloning
should not be allowed.
If we assume that people are indifferent so that 50% believe
that cloning of humans should not be allowed, does the 89% result for the
Gallup poll appear to be unusually higher than the assumed rate of 50%? Does it
appear that an overwhelming majority of adults believe that cloning of humans
should not be allowed?
ScholarMatic: Explanation & Answer
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