In: Statistics and Probability
Suppose that the sample proportion for the U.S. population aged between 25 and 34 years that has a Bachelors’s degree or higher is .35. Further suppose that this estimate came from a survery of 1282 people. (a) What are the end points of a 90% confidence interval estimate for the population proportion? (Round to 2 digits after the decimal place.) [ , ] (b) What are the end points of a 95% confidence interval estimate for the population proportion? (Round to 2 digits after the decimal place.) [ , ] (c) What are the end points of a 99% confidence interval estimate for the population proportion? (Round to 2 digits after the decimal place.) [ , ]
Solution:
Given,
n = 1282 ....... Sample size
Let denotes the sample proportion.
= 0.35
a) 90% confidence interval estimate
c = 0.90
= 1- c = 1- 0.90 = 0.10
/2 = 0.10 2 = 0.05 and 1- /2 = 0.950
= 1.645 (use z table)
E = /2 *
= 1.645 * [0.35 *(1 - 0.35)/1282]
= 0.02
Now the confidence interval is given by
( - E) ( + E)
(0.35 - 0.02) (0.35 + 0.02)
0.33 0.37
90% confidence Interval is (0.33 , 0.37)
b) 95% confidence interval estimate
c = 0.95
= 1- c = 1- 0.95 = 0.05
/2 = 0.05 2 = 0.025 and 1- /2 = 0.975
= 1.96
Now , the margin of error is given by
E = /2 *
= 1.645 * [0.35 *(1 - 0.35)/1282]
= 0.03
Now the confidence interval is given by
( - E) ( + E)
(0.35 - 0.03) (0.35 + 0.03)
0.32 0.38
95% Confidence Interval is (0.32 , 0.38)
c)99% confidence interval
c = 0.99
= 1- c = 1- 0.99 = 0.01
/2 = 0.005 and 1- /2 = 0.995
Search the probability 0.995 in the Z table and see corresponding z value
= 2.576
Now , the margin of error is given by
E = /2 *
= 2.576* [0.35 *(1 - 0.35)/1282]
= 0.03
Now the confidence interval is given by
( - E) ( + E)
(0.35 - 0.03) (0.35 + 0.03)
0.32 0.38
99% confidence interval Interval is (0.32 , 0.38)