In: Statistics and Probability
Of 147 adults selected randomly in one town, it was found that 31 of them smoke. If we were to calculate a 95% confidence interval for the proportion of people in this town who smoke, what is the margin of error? Round to 3 decimal places.
Solution :
Given that,
n = 147
x = 31
Point estimate = sample proportion = = x / n = 31/147=0.211
1 - = 1- 0.211 =0.789
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 (((0.211*0.789) /147 )
E = 0.066
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.211-0.066 < p <0.211+ 0.066
0.145< p < 0.277
The 95% confidence interval for the population proportion p is : 0.145, 0.277
Margin of error = E = 0.066