In: Statistics and Probability
In a random sample of 625 messages, 20% were spam.
a) Use these data to construct a 95% confidence interval for the true proportion of spam in all e-mail.
b) Report the margin of error associated with a 95% confidence interval for the true proportion of spam in all e-mail.
c) If you chose a 99% instead of 95%, would you expect the margin of error to increase or decrease? Why?
Solution :
Given that,
n = 625
 = 20% = 0.20
1 -
 = 1 - 0 20. = 0.80
a ) At 95% confidence level the z is ,
 = 1 - 95% = 1 - 0.95 = 0.05
 / 2 = 0.05 / 2 = 0.025
Z
/2 = Z0.025 =
1.960
Margin of error = E = Z
 / 2 * ((
 * (1 - 
)) / n)
= 1.960 * (((0.20 * 0.80) / 625 ) =0.03
b )A 95 % confidence interval for population proportion p is ,
 - E < P <
 + E
0.20 - 0.03 < p < 0.20 + 0.03
0.17 < p < 0.23
The 99% confidence interval for the population proportion p is : ( 0.17 , 0.23)
c ) At 99% confidence level the z is ,
 = 1 - 99% = 1 - 0.99 = 0.01
 / 2 = 0.01 / 2 = 0.005
Z
/2 = Z0.005 =
2.576
Margin of error = E = Z
 / 2 * ((
 * (1 - 
)) / n)
= 2.576 * (((0.20 * 0.80) / 625 ) =0.04
A 99 % confidence interval for population proportion p is ,
 - E < P <
 + E
0.20 - 0.04 < p < 0.20 + 0.04
0.16 < p < 0.24
The 99% confidence interval for the population proportion p is : ( 0.16 , 0.24)
The confidence ineval leval is increase the margin of error is increase