In: Statistics and Probability
13. The National Institutes of Health funded a study of a random sample of 856 people age 71 and older in the United States. They found that 9.7% of these people suffer from Alzheimer’s Disease.
a.Is .097 (the decimal version of 9.7%) a parameter or a statistic? What symbol do you use to represent 0.097?
b.
First, calculate the lower end of the confidence interval.
Report your answer to three decimals and round appropriately; e.g., 0.xxx (3 points)
c.
Next, calculate the upper end of the interval.
Report your answer to three decimals and round appropriately; e.g., 0.xxx. (1 point)
d. If you were to calculate a 90% confidence interval, would it be wider or narrower than the 95% confidence interval? (1 point)
Answer)
A)
Parameter means entire population
Statistics means sample
As here we are considering a sample
So, it is a statistics
And we use the symbol p hat.
B)
First we need to check the conditions of normality that is if, n*p and n*(1-p) both are greater than 5 or not
N*p = 856*0.097 = 83
N*(1-p) = 773
As both are greater than 5, so conditions are met
And therefore, we can use standard normal z table to estimate the interval
Margin of error (MOE) = Z*√P*(1-P)/√N
From z table, critical value z for 95% confidence level is 1.96
And p = 0.097
N = 856
MOE = 0.0198266313396
Lower end = P-MOE = 0.0771733686603 = 0.077
C)
Upper end = P+MOE = 0.1168266313396
D)
As we can see that, width of the interval is directly proportional to the confidence level
As margin of error = z*√p*(1-p)/√n
That is as the confidence level increases margin of error also increases and hence the interval becomes wider
So, 90% is narrower than 95%.