The figure at the right is from a survey of 498 U.S. adults. Construct a 90% confidence interval for the population proportion of U.S. adults who think that teenagers are the more dangerous drivers. The figure basically shows that:
Teenagers = 71%
People over 65 = 25%
No opinion = 4%
Solution :
Given that,
Point estimate = sample proportion = = 0.71
1 - = 1 - 0.71 = 0.29
Z/2 = Z0.05 = 1.645
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.645 (((0.71 * 0.29) / 498 )
= 0.033
A 90% confidence interval for population proportion p is ,
± E
= 0.71 ± 0.033
= ( 0.677, 0.743 )
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