Determining probabilities and confidence

Reference no: EM13100007

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?

Reference no: EM13100007

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