In: Statistics and Probability
Of the 550 people surveyed about their habit of drinking soda, 242 indicated that they drink soda everyday. Determine the lower bound of the 99% confidence interval of the true proportion of the people who drink soda everyday.
Write your answer with 4 decimal places.
Solution :
Given that,
n = 550
x = 242
= x / n = 0.44
1 - = 1 - 0.44 = 0.56
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
Margin of error = E = Z / 2 * [( * (1 - ) / n]
= 2.576 * [(0.44 * 0.56) / 550]
= 0.0545
A 99% confidence interval for population proportion p is ,
- E < P < + E
0.44 - 0.0545 < p < 0.44 + 0.0545
0.3855 < p < 0.4945
(0.3855, 0.4945)