In: Statistics and Probability
In a sample of 270 adults, 216 had children. Construct a 99% confidence interval for the true population proportion of adults with children. Give your answers as decimals, to three places
Solution :
Given that
n = 270
x = 225
 = x / n = 216 / 270 = 0.800
1 -
 = 1 - 0.800 = 0.200
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
Margin of error = E = Z
 / 2 * ((
 * (1 - 
)) / n)
= 2.576 * (((0.800 * 0.200) / 270 )
= 0.063
A 99 % confidence interval for population proportion p is ,
- E < P <
 + E
0.800 - 0.063 < p < 0.800 + 0.063
0.737 < p < 0.863