In: Statistics and Probability
Out of 300 people sampled, 270 had kids. Based on this,
construct a 95% confidence interval for the true population
proportion of people with kids.
Give your answers as decimals, to three places.
___________ < p < _______________
Solution :
Given that,
n = 300
x = 270
Point estimate = sample proportion = = x / n = 270/300=0.9
1 - = 1-0.9 =0.1
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 (((0.9*0.1) /300 )
= 0.0339
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.9- 0.0339< p <0.9+ 0.0339
0.8661< p < 0.9339
0.866< p < 0.934