In: Statistics and Probability
A large city recently surveyed 1,354 streetlights, finding that 4.2% of them had burned out. Construct a 99% confidence interval for the proportion of the city's streetlights that are burned out.
(no excel work)
Solution :
Given that,
n = 1354
Point estimate =4.2%=0.042
1 - = 1-0.042 =0.958
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z 0.005 = 2.576 ( Using z table )
Margin of error = E = Z / 2 * (((( * (1 - )) / n)
= 2.576* (((0.042*0.958) /1354 )
E = 0.014
A 99% confidence interval for proportion p is ,
- E < p < + E
0.042-0.014 < p < 0.042 + 0.014
0.028< p < 0.056