In: Math
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6. Pharmaceutical companies promote their prescription drugs using television advertising. In a survey of 90 randomly sampled television viewers, 18 indicated that they asked their physician about using a prescription drug they saw advertised on TV. Develop a 90% confidence interval for the proportion of viewers who discussed a drug seen on TV with their physician. (Hint: Review section Confidence Interval for a Population Proportion)
Solution :
Given that,
n = 90
x = 18
 = x / n = 18 / 90 = 0.200
1 - 
 = 1 - 0.200 = 0.800
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
Z
/2
= Z0.05 = 1.645
Margin of error = E = Z
 / 2 * ((
 * (1 - 
)) / n)
= 1.96 * (((0.200 * 0.800) / 90)
= 0.069
A 90% confidence interval for population proportion p is ,
 - E < P < 
 + E
0.200 - 0.069< p < 0.200 + 0.069
0.131 < p < 0.269
(0.131 , 0.269)