In: Statistics and Probability
In a survey of 3939 adults, 705 say they have seen a ghost. Construct a 99% confidence interval for the population proportion. Interpret the results.
A 99% confidence interval for the population proportion is ( , ). (Round to three decimal places as needed.) Interpret your results.
Choose the correct answer below.
A. With 99% confidence, it can be said that the sample proportion of adults who say they have seen a ghost is between the endpoints of the given confidence interval.
B. With 99% confidence, it can be said that the population proportion of adults who say they have seen a ghost is between the endpoints of the given confidence interval.
C. With 99% probability, the population proportion of adults who say they have not seen a ghost is between the endpoints of the given confidence interval.
D. The endpoints of the given confidence interval show that 99% of adults have seen a ghost.
Solution:
Here, we have to construct the 99% confidence interval for the population proportion.
Confidence interval for Population Proportion
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Where, P is the sample proportion, Z is critical value, and n is sample size.
We are given n = 3939, X = 705, P = X/n = 705/3939 = 0.178979436
Confidence level = 99%
Critical Z value = 2.5758 (by using z-table)
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Confidence Interval = 0.178979436 ± 2.5758* sqrt(0.178979436*(1 – 0.178979436)/3939)
Confidence Interval = 0.178979436 ± 0.0157
Lower limit = 0.178979436 - 0.0157 = 0.163
Upper limit = 0.178979436 + 0.0157 = 0.195
Confidence interval = (0.163, 0.195)
A 99% confidence interval for the population proportion is (0.163, 0.195).
Interpretation:
B. With 99% confidence, it can be said that the population proportion of adults who say they have seen a ghost is between the endpoints of the given confidence interval.
[Note that, we find out the confidence interval for population proportion and not for a sample proportion.]