A survey of 540 citizens found that 331 of them favor a new bill introduced by the city. We want to find a 95% confidence interval for the true proportion of the population who favor the bill. What is the lower limit of the interval?
Solution :
Given that,
n = 540
x = 331
= x / n = 331 / 540 = 0.613
1 - = 1 - 0.613 = 0.387
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
Z= Z0.05 = 1.645
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.96 * (((0.613 * 0.387) / 540)
= 0.035
A 95% confidence interval for population proportion p is ,
- E = 0.613 - 0.035 = 0.578
The lower limit of the interval = 0.578
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