In: Statistics and Probability
A newsgroup is interested in constructing a 99% confidence interval for the proportion of all Americans who are in favor of a new Green initiative. Of the 557 randomly selected Americans surveyed, 408 were in favor of the initiative. Round answers to 4 decimal places where possible.
a. With 99% confidence the proportion of all Americans who favor the new Green initiative is between ____ and ____.
Solution :
Given,
n = 557 ....... Sample size
x = 408 .......no. of successes in the sample
Let denotes the sample proportion.
= x/n = 408 / 557 = 0.732
Our aim is to construct 99% confidence interval.
c = 0.99
= 1 - c = 1- 0.99 = 0.01
/2 = 0.005 and 1- /2 = 0.995
Search the probability 0.995 in the Z table and see corresponding z value
= 2.576
Now , the margin of error is given by
E = /2 *
= 2.576 * [ 0.732 *(1 - 0.732)/557]
= 0.0483
Now the confidence interval is given by
( - E) ( + E)
( 0.732 - 0.0483 ) ( 0.732 + 0.0483 )
0.6837 0.7803
Required 99% Confidence Interval is ( 0.6837 , 0.7803 )
The 99% confidence the proportion of all Americans who favor the new Green initiative is between 0.6837 and 0.7803.