In: Statistics and Probability
1.
a.
TRADITIONAL METHOD
given that,
possible chances (x)=73
sample size(n)=100
success rate ( p )= x/n = 0.73
I.
sample proportion = 0.73
standard error = Sqrt ( (0.73*0.27) /100) )
= 0.044
II.
margin of error = Z a/2 * (standard error)
where,
Za/2 = Z-table value
level of significance, α = 0.1
from standard normal table, two tailed z α/2 =1.645
margin of error = 1.645 * 0.044
= 0.073
III.
CI = [ p ± margin of error ]
confidence interval = [0.73 ± 0.073]
= [ 0.657 , 0.803]
-----------------------------------------------------------------------------------------------
DIRECT METHOD
given that,
possible chances (x)=73
sample size(n)=100
success rate ( p )= x/n = 0.73
CI = confidence interval
confidence interval = [ 0.73 ± 1.645 * Sqrt ( (0.73*0.27) /100) )
]
= [0.73 - 1.645 * Sqrt ( (0.73*0.27) /100) , 0.73 + 1.645 * Sqrt (
(0.73*0.27) /100) ]
= [0.657 , 0.803]
-----------------------------------------------------------------------------------------------
interpretations:
1. We are 90% sure that the interval [ 0.657 , 0.803] contains the
true population proportion
2. If a large number of samples are collected, and a confidence
interval is created
for each sample, 90% of these intervals will contains the true
population proportion
b.
TRADITIONAL METHOD
given that,
possible chances (x)=73
sample size(n)=100
success rate ( p )= x/n = 0.73
I.
sample proportion = 0.73
standard error = Sqrt ( (0.73*0.27) /100) )
= 0.044
II.
margin of error = Z a/2 * (standard error)
where,
Za/2 = Z-table value
level of significance, α = 0.2
from standard normal table, two tailed z α/2 =1.282
margin of error = 1.282 * 0.044
= 0.057
III.
CI = [ p ± margin of error ]
confidence interval = [0.73 ± 0.057]
= [ 0.673 , 0.787]
-----------------------------------------------------------------------------------------------
DIRECT METHOD
given that,
possible chances (x)=73
sample size(n)=100
success rate ( p )= x/n = 0.73
CI = confidence interval
confidence interval = [ 0.73 ± 1.282 * Sqrt ( (0.73*0.27) /100) )
]
= [0.73 - 1.282 * Sqrt ( (0.73*0.27) /100) , 0.73 + 1.282 * Sqrt (
(0.73*0.27) /100) ]
= [0.673 , 0.787]
-----------------------------------------------------------------------------------------------
interpretations:
1. We are 80% sure that the interval [ 0.673 , 0.787] contains the
true population proportion
2. If a large number of samples are collected, and a confidence
interval is created
for each sample, 80% of these intervals will contains the true
population proportion
Answer:
a.
90% sure that the interval [ 0.657 , 0.803]
b.
80% sure that the interval [ 0.673 , 0.787]
compare above both.it should be narrower.