Question

A Reader's Digest / Gallup Survey on the drinking habits of Americans estimated the percentage of adults across the country who drink beer, wine, or hard liquor at least occasionally. Of the 1516 adults interviewed, 985 said they drank.

Based on the data, approximately 65% of all Americans drink beer, wine, or hard liquor at least occasionally. Give the margin of error for this estimate (assume a 95% confidence level).

Answer 1

We need to find the margin of error for 95% confidence interval for the population proportion. We have been provided with the following information about the number of favorable cases:

Favorable Cases XX =	985
Sample Size N =	1516

The sample proportion is computed as follows, based on the sample size N=1516 and the number of favorable cases X=985:

The corresponding Margin of error is computed as shown below:

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