Refer to Exercise 2. Find a 98% upper confidence bound for

Answer:

Step 1 of 3:

    Here our aim is to find a 98% upper confidence bound for the proportion of residences that  reduced their water consumption.

 Step  2 of 3:   

  Let X = The number of residences that  reduced their water consumption.

 Therefore,

    Where, the sample size n = 100,  X = 73.      

A 98% upper confidence bound for ‘p’ is given by

                           Where,

                                           = 100 + 4

                                           = 104.

                                        =

                                        = 0.72115

   Then,

From the statistical table the z-value for 98% confidence interval is 2.32.

                      =     

                      = 0.811.

 Step  3 of 3: 

 Conclusion:

              Therefore, a 98% upper confidence bound for the proportion of residences that  reduced their water consumption is 0.811.