In: Statistics and Probability
A study involves 605 randomly selected deaths, with 28 of them caused by accidents. Use this data to construct a 98% confidence interval for the true percentage of all deaths that are caused by accidents.
Solution :
Given that,
n = 605
x = 28
Point estimate = sample proportion = = x / n = 605 / 28 = 0.046
1 - = 1 - 0.046 = 0.954
At 98% confidence level the z is ,
= 1 - 98% = 1 - 0.98 = 0.02
/ 2 = 0.02 / 2 = 0.01
Z/2 = Z 0.01 = 2.326
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 2.326 * (((0.046*0.954) / 605)
= 0.020
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.046 - 0.020 < p < 0.046 + 0.020
0.026 < p < 0.066
The 98% confidence interval for the true percentage of all deaths that are caused by accidents is : (0.026 , 0.066 )