In: Statistics and Probability
of 200 adults randomly selected from one town 43 of them smoke. find the best point estimate for the proportion of all adults in town who smoke. for a 95% confidence interval for the true proportion of all adults in the town who smoke, what is the margin of error ? round up to three decimal places.
Solution :
Given that,
n = 200
x = 43
Point estimate = sample proportion = = x / n = 43/200=0.215
1 - = 1-0.215 =0.785
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 (((0.215*0.785) / 200)
E = 0.0569
Margin of error = E = 0.057