In: Statistics and Probability
Out of 100 people sampled, 5 preferred Candidate A. Based on this, estimate what proportion of the entire voting population (p) prefers Candidate A. Use a 90% confidence level, and give your answers as decimals, to three places.
_____ < p < _______
Solution :
Given that,
Point estimate = sample proportion =
= x / n = 5/100=0.05
1 -
= 1-0.05 =0.95
At 90% confidence level the z is
= 1 - 90% = 1 - 0.90 = 0.1
/ 2 = 0.1 / 2 = 0.05
Z/2
= Z0.05 = 1.645 ( Using z table )
Margin of error = E Z/2
*
((
* (1 -
)) / n)
= 1.645 *((0.05*0.95)
/100 )
= 0.036
A 90% confidence interval for population proportion p is ,
- E < p <
+ E
0.05-0.036 < p < 0.05+0.036
0.014< p < 0.086