In: Statistics and Probability
Out of 320 people sampled, 240 had kids. Based on this,
construct a 95% confidence interval for the true population
proportion of people with kids.
Solution :
Given that,
n = 320
x = 240
Point estimate = sample proportion = = x / n = 240/320=0..75
1 - = 1- 0.75 =0.25
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96 ( Using z table )
Margin of error = E = Z/2 * ((( * (1 - )) / n)
= 1.96 (((0.75*0.25 )/ 320)
E = 0.047
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.75-0.047 < p <0.75+0.047
0.7< p < 0.8
The 95% confidence interval for the population proportion p is : 0.7< p < 0.8