In: Statistics and Probability
Of 250 adults selected randomly from one town, 72 of them smoke. Construct a 95% confidence interval for the true percentage of all adults in the town that smoke
Solution : -
Given that,
n = 250
x = 72
Point estimate = sample proportion = = x / n = 72 / 250 = 0.288
1 - = 1 - 0.288 = 0.712
At 95% confidence level
= 1 - 95%
=1 - 0.95 =0.05
/2
= 0.025
Z/2
= Z0.025 = 1.960
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.96 ((( 0.288 * 0.712 ) / 250 )
= 0.056
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.288 - 0.056 < p < 0.288 + 0.056
0.232 < p < 0.344
23.2% < p < 34.4%
The 95% confidence interval for the true percentage of all adults in the town that smoke is : - 23.2% < p < 34.4%