In: Statistics and Probability
In a random sample of 800 men aged 25 to 35 years, 24% said they live with one or both parents. Construct a 95% confidence interval for the proportion of men aged 25 to 35 that live with their parents. Make sure to include every step and an interpretation.
Solution :
The 95% confidence interval for population proportion is given as follows :
Where, p̂ is sample proportion, q̂ = 1 - p̂, n is sample size and Z(0.05/2) is critical z-value to construct 95% confidence interval.
Sample proportion of men aged 25 to 35 years, who live with one or both parents is given by,
n = 800
Using Z-table we get, Z(0.05/2) = 1.96
Hence, 95% confidence interval for the proportion of men aged 25 to 35 that live with their parents is,
The 95% confidence interval for the proportion of men aged 25 to 35 that live with their parents is (0.2104, 0.2696).
Interpretation : We are 95% confident that the proportion of men aged 25 to 35 that live with their parents, lies between 0.2104 and 0.2696.
In other words, we are 95% confident that the percentage of men aged 25 to 35 that live with their parents, lies between 21.04% and 26.96%.
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