In: Statistics and Probability
An experimenter flips a coin 100 times and gets 42 heads. Find the 90% confidence interval for the probability of flipping a head with this coin.
Solution :
Given that,
n = 100
x = 42
Point estimate = sample proportion = = x / n = 42/100=0.42
1 - = 1-0.42=0.58
At 90% confidence level
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645 ( Using z table )
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.645 (((0.42*0.58) / 100)
= 0.08
A 90% confidence interval is ,
- E < p < + E
0.42-0.08 < p < 0.42+0.08
(0.34 ,0.50)