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