A survey of 571 citizens found that 334 of them favor anew 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? (Round to 3 decimal digits)
Solution :
Given that,
n = 571
x = 334
Point estimate = sample proportion = = x / n = 334/571 = 0.585
1 - = 1 - 0.585 = 0.415
At 95% confidence level
= 1-0.95% =1-0.95 =0.05
/2
=0.05/ 2= 0.025
Z/2
= Z0.025 = 1.960
Z/2 = 1.960
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.960 * ((0.585*(0.415) /571 )
= 0.040
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.585 - 0.040 < p < 0.585 + 0.040
0.545< p < 0.625
( 0.545,0.625)
The lower limit of the interval = 0.545
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