In: Statistics and Probability
(a) What is the 95% confidence interval for the proportion of people in the population who receive at least some of their news from social media?
(b) Working at the 95% confidence level, how large a sample would be necessary to estimate the population proportion with a margin of error of ±0.02? Assume a planning value of p∗ = 0.68
Solution :
Given that,
n = 90
x = 61
Point estimate = sample proportion = = x / n = 61/90=0.678
1 - = 1- 0.678 =0.322
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96 ( Using z table )
Margin of error = E = Z/2 * ((( * (1 - )) / n)
= 1.96 (((0.678*0.322) / 90)
= 0.0965
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.678-0.0965 < p <0.678+ 0.0965
0.5815< p < 0.7745
The 95% confidence interval for the population proportion p is : 0.5815, 0.7745
(B)
Solution :
Given that,
= 0.68
1 - = 1 - 0.68 = 0.32
margin of error = E = +/-0.02
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.96 / 0.02)2 * 0.68 * 0.32
= 2089.8
Sample size =2090