In: Statistics and Probability
A researcher wants to know the proportion of students at the university who live in residence. A sample of 50 students was taken and the researcher found 25 of them lived in residence. What is the 99% confidence interval for the proportion of students who live in residence?
Solution :
Given that,
n = 50
x = 25
Point estimate = sample proportion = 
 = x / n = 25/50=0.5
1 - 
  = 1- 0.5 =0.5
At 99% confidence level the z is ,
  = 1 - 99% = 1 - 0.99 =
0.01
/ 2 = 0.01 / 2 = 0.005
Z
/2
= Z0.005 = 2.576 ( Using z table )
  Margin of error = E =   Z
/ 2     * ((((
* (1 - 
)) / n)
= 2.576* (((0.5*0.5)
/50 )
= 0.1822
A 99% confidence interval for population proportion p is ,
- E < p < 
 + E
0.5-0.1822 < p <0.5+ 0.1822
0.3178< p < 0.6822
The 99% confidence interval for the population proportion p is : 0.3178, 0.6822