In: Statistics and Probability
Out of 300 people sampled, 264 had kids. Based on this,
construct a 99% confidence interval for the true population
proportion of people with kids.
Give your answers as decimals, to three places
______ < p < ______
Solution :
Given that,
n = 300
x = 264
 = x / n = 264 / 300 = 0.880
1 -
 = 1 - 0.880 = 0.120
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 * (((0.880 * 0.120) / 300)
= 0.048
A 99 % confidence interval for population proportion p is ,
 - E < P <
 + E
0.880 - 0.048 < p < 0.880 + 0.048
0.832 < p < 0.928
The 99% confidence interval for the population proportion p is : ( 0.832 , 0.928)