In: Statistics and Probability
A travel agent wants to estimate the proportion of vacationers who plan to travel outside the United States in the next 12 months. A random sample of 130 vacationers revealed that 40 had plans for foreign travel in that time frame. Construct a 95% confidence interval estimate of the population proportion. Make a statement about this in context of the problem
Solution
Given that,
n = 130
x = 40
= x / n = 40 /130 = 0.308
1 -
= 1 - 0.308 = 0.692
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2
= Z0.025 = 1.96
Margin of error = E = Z
/ 2 *
((
* (1 -
)) / n)
= 1.96 * (((0.308*
0.692) / 130) = 0.0794
A 95% confidence interval for population proportion p is ,
- E < P <
+ E
0.308- 0.0794< p < 0.308 + 0.0794
0.2286< p < 0.3874
The 95% confidence interval for the population proportion p is : ( 0.2286 , 0.3874)