It is estimated that at the peak of the COVID-19 pandemic, 1.5 out of 87 people in New York will be infected with the virus. Construct a 99% confidence interval for the proportion of infected people in New York.
Confidence interval for Population Proportion is given as below:
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Where, P is the sample proportion, Z is critical value, and n is sample size.
We are given
x = 1.5
n = 87
P = x/n = 1.5/87 = 0.017241
Confidence level = 99%
Critical Z value = 2.5758
(by using z-table)
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Confidence Interval = 0.017241 ± 2.5758* sqrt(0.017241*(1 –0.017241)/87)
Confidence Interval = 0.017241 ± 2.5758* 0.0140
Confidence Interval = 0.017241 ± 0.0359
Lower limit = 0.017241 - 0.0359 = -0.0187
Upper limit = 0.017241 + 0.0359 = 0.0532
Confidence interval = (-0.0187, 0.0532)
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