In: Economics
The Centers for Disease Control reported the percentage of people 18 years of age and older who smoke (CDC website, December 14, 2014). Suppose that a study designed to collect new data on smokers and nonsmokers uses a preliminary estimate of the proportion who smoke of .32.
a. How large a sample should be taken to estimate the proportion
of smokers in the population with a margin of error of .02 (rounded
up to the next whole number)? Use 95% confidence.
2090
b. Assume that the study uses your sample size recommendation in
part (a) and finds 520 smokers. What is the point estimate of the
proportion of smokers in the population (to 4 decimals)?
.2488
c. What is the 95% confidence interval for the proportion of smokers in the population (to 4 decimals)?
A)
The formula for margin of error for population proportion :-
Given : Significance level :
Critical value :
The proportion of people smoke : p=0.32
Margin of error : E= 0.02
Substitute all the value in the above formula, we get
Squaring both sides , we get
0.000104123281=.2176/n
n=0.2176/0.000104123281
n=2089.83042
Hence, the required sample size = 209
B)
the point estimate of the proportion is the sample propotion.the sample proportion is the number of successes divided by the sample size
p=x/n
=520/2090
=0.2488
C)
95% of critical interval is calculated as
;=1.96
lower limit ==.2488-1.96(
=.2488-1.96()=..2488-1.96()=.2488-(1.96*.00945)=.2488-.0185=.2303
upper limit=
= .2488+1.96()
=.2488-1.96()=.2488+1.96()=.2488-(1.96*.00945)=.2488+.0185=.2673
therefore confidence interval is(.2303,.2673)