In: Statistics and Probability
(2) A survey of households in a small town showed that in 500 of 2,000 sampled households, at least one member attended a town meeting during the year. What is the 95% confidence interval for the proportion of households represented at a town meeting?
Solution :
Given that,
n = 2000
x = 500
= x / n = 500 /2000 = 0.25
1 - = 1 - 0.25= 0.75
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 * (((0.25* 0.75) / 2000) = 0.0190
A 95 % confidence interval for population proportion p is ,
- E < P < + E
0.25 - 0.0190 < p < 0.25+ 0.0190
0.2310 < p < 0.2690
The 90% confidence interval for the population proportion p is : ( 0.2310 , 0.2690 )