In: Statistics and Probability
Use the given degree of confidence and sample data to construct a confidence interval for the population proportion p. Of 125 adults selected randomly from one town, 31 of them smoke. Construct a 99% confidence interval for the true percentage of all adults in the town that smoke.n
Solution :
Given,
n = 125 ....... Sample size
x = 31 .......no. of successes in the sample
Let denotes the sample proportion.
= x/n = 31 /125 = 0.248
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 * [.0.248 *(1 - 0.248)/125]
= 0.099
Now the confidence interval is given by
( - E) ( + E)
( 0.248 - 0.099 ) ( 0.248 + 0.099 )
0.149 0.347
Required 99% Confidence Interval is ( 0.149 , 0.347 )