In: Statistics and Probability
A research institute poll asked respondents if they felt vulnerable to identity theft. In the poll, n equals 906 and x equals 529 who said "yes." Use a 90 % confidence level.
Solution:
Given,
n = 906 ....... Sample size
x =529 .......no. of successes in the sample
Let denotes the sample proportion.
= x/n = 529/906 = 0.5839
Our aim is to construct 90% confidence interval.
c = 0.9
= 1 - c = 1- 0.9 = 0.10
/2 = 0.05 and 1- /2 = 0.95
Search the probability 0.95 in the Z table and see corresponding z value
= 1.645
Now , the margin of error is given by
E = /2 *
= 1.645 * [0.5839 *(1 - 0.5839)/906]
= 0.0269
Now the confidence interval is given by
( - E) ( + E)
(0.5839 - 0.0269) (0.5839 + 0.0269)
0.557 0.611
i.e.
(0.557 , 0.611)
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