In: Statistics and Probability
Out of 100 people sampled, 50 had kids. Based on this, construct
a 95% confidence interval for the true population proportion of
people with kids.
Give your answers as decimals, to three places
Solution :
Given that,
n = 100
x = 50
Point estimate = sample proportion =
= x / n = 50/100=0.5
1 -
= 1- 0.5 =0.5
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 (((0.5*0.5)
/ 100)
E = 0.098
A 95% confidence interval for population proportion p is ,
- E < p <
+ E
0.5-0.098 < p <0.5+0.098
0.402< p < 0.598
The 95% confidence interval for the population proportion p is : 0.402, 0.598