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Calculate 95% confidence interval: 421 of 500 have a phone

Step by step, with the reason for every step · Confidence interval for a proportion · University Statistics

Step by step

The question

Question: in a sample of 500, 421 have a phone: find the 95% confidence interval for the true proportion.

95% interval for p: 421 of 500 have a phone

1 Name the numbers

p prime is the part of the sample that says yes: x divided by n.

p′ = the part of the sample: x ÷ n

421 divided by 500 is 0.842.

p′ = 421500 = 0.842

q prime is the rest: 1 minus 0.842 is 0.158.

q′ = 1 − 0.842 = 0.158

Careful!

p prime is the fraction 0.842, not the count 421.

Careful: p′ is a part of 1: 421 ÷ 500, not 421

Both counts, 421 and 79, are at least 5.

So the normal bell works here.

n × p′ = 421, n × q′ = 79: both at least 5

2 Find z*

95 percent of the bell is in the middle.

That leaves 5 percent: 2.5 percent in each end.

95% in the middle: 5% left over, 2.5% in each end

z* marks the cut between the middle and the ends.

Left of z* are the middle and one end: 0.95 plus 0.025 is 0.9750.

left of z* = 0.95 + 0.025 = 0.9750

Now we look for 0.9750 inside the table.

0.9750 is in the table: row 1.9, column .06.

So z = 1.96.

z* = 1.96

3 Error bound

The error bound for a proportion: z* times the square root of p prime times q prime over n.

EBP = z* × √p′ q′n

0.842 times 0.158 is 0.133.

Divided by 500: about 0.00026607.

p′ q′n = 0.842 × 0.158500 = 0.133500 ≈ 0.00026607

The square root of that is about 0.0163.

√p′ q′n = √0.00026607 ≈ 0.0163

Times 1.96: about 0.032.

EBP = 1.96 × 0.0163 ≈ 0.032

4 The interval

Take the error bound away from the middle: 0.842 minus 0.032 is 0.81.

= p′ − EBP = 0.842 − 0.032 = 0.81

And add it: 0.842 plus 0.032 is 0.874.

= p′ + EBP = 0.842 + 0.032 = 0.874

The 95 percent confidence interval is (0.81, 0.874).

= (0.81, 0.874)

5 Say it in words

In words: we are 95 percent confident that the true proportion is between 81% and 87.4%.

95% confident: between 81% and 87.4%

6 Check

Let's check: the middle of the interval should be 0.842.

0.81 plus 0.874, divided by 2, is 0.842.

middle: (0.81 + 0.874) ÷ 2 = 0.842

Half the width should be the error bound: 0.874 minus 0.81, divided by 2, is 0.032.

So it is right!

half the width: (0.874 − 0.81) ÷ 2 = 0.032

Let's look back.

First: name the numbers.

Then: find z*.

Then: error bound.

Then: the interval.

Then: say it in words.

Last: check.

Answer
= (0.81, 0.874)

Your turn

Try this one yourself, then check:

95% interval for p: 375 of 500 have a phone
Show the answer
(0.712, 0.788)

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