Word Format LAS Statistics and Prob 3
Word Format LAS Statistics and Prob 3
Learning Objectives:
At the end of this activity, you are expected to:
• understand the population proportion p;
• compute the point estimator of a population proportion;
• identify the appropriate form of the confidence interval estimator
for the population proportion;
• compute the interval estimates of population proportions; and
• solve problems involving confidence interval estimation of the
population proportion.
Key Concepts:
• population proportion
• population proportion point estimator
• population proportion interval estimator
Discussion:
ConfidenceInterval Margin
of Error for a Population Proportion
Example 1:
1000 randomly selected Filipinos were asked if they believed the minimum wage
should be raised. 600 said yes. Construct a 95% confidence interval for the proportion of
Filipinos who believe that the minimum wage should be raised.
Solution: We
have
p = 600/1000 = 0.6 (point estimator) z c = 1.96 (since we have n = 1000, so
d.f. = 999 with 95% confidence level from t- Table) and n = 1000 We calculate:
Hence we can conclude that between 57 and 63 percent of all Filipinos agree with the
proposal. In other words, with a margin of error of 0.03, 60% agree.
Example 2:
Suppose that you were interested in the average number of units that students take at a two
year college to get an AA degree. Suppose you wanted to find a 95% confidence interval
with a margin of error of 0.5 for m knowing s = 10. How many people should we ask?
Solution
Solving for n in
𝑠
Margin of Error E = 𝑧𝑐
we have
E = 𝑧𝑐𝑠 (cross product)
(divide both sides by E)
𝐸
Solution:
We have
E = 3, zc = 1.65
but there is no way of finding sigma exactly. They use the following reasoning: most car
customers are between 16 and 68 years old hence the range is
Range = 68 - 16 = 52
The range covers about four standard deviations hence one standard deviation is about
s = 52/4 = 13
We can now calculate n:
Example 4:
Suppose that you are in charge to see if dropping a computer will damage it. You want to
find the proportion of computers that break. If you want a 90% confidence interval for this
proportion, with a margin of error of 4%, How many computers should you drop?
Solution
The formula states that
Example 5:
During the 7th examination of the Offspring cohort in the Framingham Heart Study
there were 1219 participants being treated for hypertension and 2,313 who were not on
treatment. If we call treatment a "success", then x=1219 and n=3532. The sample
proportion is:
(point estimator)
This is the point estimate, i.e., our best estimate of the proportion of the population on
treatment for hypertension is 34.5%. The sample is large, so the confidence interval can be
computed using the formula:
which is
Example 6:
A survey of 1200 citizens showed that 715 trust the president. Compute a 95%
confidence interval for the proportion of all citizens who trust the president.
Solution:
1. Find the point estimate for the population proportion by dividing 715 and 1200. p =
2. Find 1 – p.
1 – p = 1 – 0.6 = 0.4
3. Find 𝑧𝑐 from t-Table given n = 1200 and 95% confidence level which will give us a
value of 1.96
Exercises:
Bataller, Ramil T., Statistics and Probability. Salesiana Books by Don Bosco Press,
Inc., 2016.
Answer Key:
1. a. 0.36
b. 0.46
c. 0.41