Question

In: Economics

The Centers for Disease Control reported the percentage of people 18 years of age and older...

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)?

Solutions

Expert Solution

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)


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