In: Statistics and Probability
In a survey of 4100 adults, 732 say they have seen a ghost. Construct a 99% confidence interval for the population proportion. Interpret the results.
Answer : We have given :
n = sample size = 4100 total
x = 732 say they have seen a ghost
phat = sample proprtion = x / n = 732 / 4100
= 0.1785
α = level of significance = 99 % ie 0.01
# we have to calculate 99 % confidence interval for population proportion : p
P = population proportion
P = [ phat ± Zc * sqrt ( phat * (1 - phat) / n )) ]
Zc = critical value for z test = ± 2.58 ( from table )
and
# sqrt ( phat * (1 - phat) / n )) = sqrt ( 0.1785 * (1 - 0.1785 ) / 4100 )) = 0.00598
P = [ phat ± Zc * sqrt ( phat * (1 - phat) / n )) ]
= [ 0.1785 ± ( 2.58 * 0.00598) ]
= [ 0.1785 ± 0.0154 ]
= [ 0.1631 , 0.1939 ]
lower limit = 0.1631 and
upper limit = 0.1939
Interpretation :
we can say 99 % confident that population proportion is lies within 0.1631 to 0.1939