In: Statistics and Probability
In a survey of 1500 U.S. workers who are working from home, 885 of them would prefer to keep doing so after restrictions are lifted. Construct a 99% confidence interval for the population proportion of U.S workers who would like to keep working from home.
Solution :
Given that,
n = 1500
x = 885
Point estimate = sample proportion = = x / n = 885/1500=0.59
1 - = 1-0.59 =0.41
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z0.005 = 2.576 ( Using z table )
Margin of error = E = Z / 2 * (((( * (1 - )) / n)
= 2.576* (((0.59*0.41) / 1500)
= 0.0327
A 99% confidence interval for population proportion p is ,
- E < p < + E
0.59-0.0327 < p <0.59+ 0.0327
0.5573< p < 0.6227
The 99% confidence interval for the population proportion p is : 0.5573,0.6227