In: Statistics and Probability
Tests indicated that out of 500 random residents, 70 were infected by the virus.
So, the sample proportion is 70/500, ie. 0.14.
Now, we have to construct a 95% confidence interval for the proportion of infected people in the town.
Now, we know that the confidence interval for population proportion is given by
Where, p is the given sample proportion, z is the z value corresponding to the given confidence interval, and n is the given sample size.1
Here,
n=500
p=0.14
For 95% confidence interval, z=1.96
So, putting these values in the above definition, we get
ie.
ie.
ie.
ie.
ie.
ie.
So, the 95% confidence interval for the population proportion is (0.11,0.17)