In: Statistics and Probability
An article included the following statement: "Few people believe
there's much reality in reality TV: a total of 78% said the shows
are either 'totally made up' or 'mostly distorted.'" This statement
was based on a survey of 1006 randomly selected adults. Compute a
bound on the error (based on 95% confidence) of estimation for the
reported proportion of 0.78. (Round your answer to three decimal
places.)
Interpret the bound. (Round your answers to one decimal place.)
We are % confident that the proportion of all adults who believe that the shows are either "totally made up" or "mostly distorted" is within % of the sample proportion of %.
Solution :
Given that,
n = 1006
Point estimate = sample proportion = =0.78
1 - = 1-0.78 =0.22
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 (((0.78*0.22) /1006 )
E = 0.026
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.78- 0.026< p < 0.78+0.026
0.754< p < 0.806
We are 99% confident that the proportion of all adults who believe that the shows are either "totally made up" or "mostly distorted" is within 7.5% of the sample proportion of 8.1%.