7.3 A Population Proportion

Aligned outcomes:

SLO 4

Demonstrate an understanding of, and ability to use, basic ideas of statistical processes, including hypothesis tests and confidence interval estimation.

Proportions get their own interval here, built from the sample proportion p-hat and the same point-estimate-plus-error-bound shape. You also learn the success-failure condition that decides whether the normal approximation is safe to use.

SLO 5

Identify appropriate statistical techniques and use technology-based statistical analysis to describe, interpret, and communicate results.

1-PropZInt on the calculator handles the arithmetic, but you have to check the conditions yourself and write the interpretation in words. That check-before-compute habit is the technique-selection skill this outcome asks for.

Learning Objectives

By the end of this section, you will be able to:

In this section, you will learn to:
  • recognize when a problem is asking about a proportion rather than a mean;
  • calculate the sample proportion \(p'\) and the error bound for a proportion;
  • construct and interpret a confidence interval for a population proportion;
  • use the plus-four adjustment to build a more accurate interval from a small sample;
  • calculate the sample size needed to hit a target margin of error.

During an election year, we see articles in the newspaper that state confidence intervals in terms of proportions or percentages. A poll for a particular candidate running for president might show that the candidate has 40% of the vote within three percentage points, if the sample is large enough. Election polls are usually calculated with 95% confidence, so the pollsters would be 95% confident that the true proportion of voters who favored the candidate is between 0.37 and 0.43: \((0.40 - 0.03,\ 0.40 + 0.03)\).

The same shape of question shows up everywhere else. Investors want the true proportion of stocks that go up each week. A company that sells personal computers wants the proportion of households in the United States that own one. All of these are proportions, and all of them get a confidence interval built the same way.

The three points are the whole story

That "within three percentage points" is the error bound. Everything in this section is a method for computing it, and everything after it is a method for making it smaller.

The procedure for finding the confidence interval, the sample size, the error bound, and the confidence level for a proportion is similar to the one for a population mean. The reasoning is identical. Only the formulas change.

How do you know you are dealing with a proportion problem? Two signals. First, the underlying distribution is a binomial distribution — the data are counts of successes and failures, not measurements. Second, there is no mention of a mean or an average anywhere in the question.

If \(X\) is a binomial random variable, then \(X \sim B(n, p)\), where \(n\) is the number of trials and \(p\) is the probability of a success. To turn that count into a proportion, take \(X\), the random variable for the number of successes, and divide it by \(n\), the number of trials. The random variable \(P'\) (read "P prime") is that proportion. Some books write it \(\widehat{P}\) and read it "P hat" — same thing.

7.3.1 Confidence Intervals for a Population Proportion

Definition 7.3.1: Sample Proportion

For a sample of size \(n\) containing \(x\) successes, the sample proportion is

$$ p' = \frac{x}{n}, $$

and the sample proportion of failures is \(q' = 1 - p'\). The random variable \(P' = \frac{X}{n}\) is called the estimated proportion; the observed value \(p'\) is a point estimate for \(p\), the true population proportion.

When \(n\) is large and \(p\) is not close to zero or one, we can use the normal distribution to approximate the binomial:

$$ X \sim N\!\left(np,\ \sqrt{npq}\right) $$

If we divide the random variable, the mean, and the standard deviation all by \(n\), we get a normal distribution of proportions with \(p'\) as the random variable:

$$ \frac{X}{n} = P' \sim N\!\left(\frac{np}{n},\ \frac{\sqrt{npq}}{n}\right) $$

A little algebra cleans up that standard deviation: \(\frac{\sqrt{npq}}{n} = \sqrt{\frac{pq}{n}}\). So \(P'\) follows a normal distribution for proportions,

$$ P' \sim N\!\left(p,\ \sqrt{\frac{pq}{n}}\right). $$

That is the result the rest of the section runs on. Once we know \(P'\) is normal, a confidence interval is built the same way it was for a mean: take the point estimate and go out a fixed distance on either side. That distance has a name.

Definition 7.3.1 - The sample proportion: the same sample, re-read as a share of successes.

Definition 7.3.2: Error Bound for a Proportion

The error bound for a proportion, written EBP, is

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\sqrt{\frac{p'q'}{n}}, \qquad \text{where } q' = 1 - p'. $$
Borrowing from your own answer

To measure how far off your estimate might be, the formula needs the true value. You do not have it, so you plug in your estimate. It works, but only once the sample is big enough that the estimate is close.

This looks like the error bound formula for a mean, except that the "appropriate standard deviation" is different. For a mean with a known population standard deviation, the standard deviation we use is \(\frac{\sigma}{\sqrt{n}}\). For a proportion it is \(\sqrt{\frac{pq}{n}}\).

There is one honest problem with that. The formula wants \(p\) and \(q\), which are the population proportions — the very numbers we are trying to estimate. We do not have them. So we substitute the sample proportions \(p'\) and \(q'\), which we can compute from the data, and use \(\sqrt{\frac{p'q'}{n}}\) instead. It is an estimate standing in for the thing being estimated, which is a little uncomfortable, and the plus four method later in this section exists precisely because that substitution introduces error.

Definition 7.3.2 - The error bound is the distance out to the interval's edge, and more confidence costs more of it.

Definition 7.3.3: Confidence Interval for a Population Proportion

The confidence interval for a population proportion \(p\) has the form

$$ (p' - EBP,\ p' + EBP) = \left(p' - z_{\frac{\alpha}{2}}\sqrt{\frac{p'q'}{n}},\ \ p' + z_{\frac{\alpha}{2}}\sqrt{\frac{p'q'}{n}}\right). $$
The z-score for a proportion

If \(P' \sim N\!\left(p, \sqrt{\frac{pq}{n}}\right)\), then the z-score formula is \(z = \frac{p' - p}{\sqrt{\frac{pq}{n}}}\). Same standardization as always: subtract the centre, divide by the spread.

The interval can be used only if the number of successes \(np'\) and the number of failures \(nq'\) are both greater than five.

That last condition is not a formality. It is what makes the normal approximation legal in the first place. If you have 200 people and only two of them said yes, the binomial distribution is badly lopsided, a symmetric normal curve is a poor model of it, and the interval you compute will not have the coverage it claims. Check both counts before you compute anything.

Working an interval by hand takes four numbers and they always come in the same order: \(p'\), then \(q'\), then \(z_{\frac{\alpha}{2}}\) from the confidence level, then EBP from the three of them together. The two worked examples below run that sequence at two different confidence levels so you can see which pieces change and which do not. Notice in particular that \(p'\) and \(q'\) come only from the data — the confidence level has no effect on them at all — while \(z_{\frac{\alpha}{2}}\) comes only from the confidence level and has nothing to do with the data. They meet for the first time in the EBP formula. Students who lose points here almost always lose them by mixing up which of the two inputs a given number belongs to, so it is worth writing the four values down in a column before combining them rather than trying to do the whole thing in one pass on a calculator.

Definition 7.3.3 - What 95% confidence means: twenty intervals built the same way, nineteen catch the true proportion.

Try It Now 7.3.1

Suppose 250 randomly selected people are surveyed to determine if they own a tablet. Of the 250 surveyed, 98 reported owning a tablet. Using a 95% confidence level, compute a confidence interval estimate for the true proportion of people who own tablets.

Solution

Step 1 — Find \(p'\) and \(q'\). There are \(x = 98\) successes out of \(n = 250\) trials.

$$ p' = \frac{98}{250} = 0.392 \qquad q' = 1 - 0.392 = 0.608 $$

Check the condition: \(np' = 98 > 5\) and \(nq' = 152 > 5\), so the normal approximation is allowed.

Step 2 — Find the z-value. Since \(CL = 0.95\), \(\alpha = 1 - 0.95 = 0.05\) and \(\frac{\alpha}{2} = 0.025\), so \(z_{0.025} = 1.96\).

Step 3 — Compute EBP.

$$ EBP = (1.96)\sqrt{\frac{(0.392)(0.608)}{250}} = (1.96)(0.0309) = 0.061 $$

Step 4 — Build the interval.

$$ p' - EBP = 0.392 - 0.061 = 0.331 \qquad p' + EBP = 0.392 + 0.061 = 0.453 $$

Answer: the 95% confidence interval is \((0.331, 0.453)\). We estimate with 95% confidence that between 33.1% and 45.3% of all people own a tablet.

Example 7.3.1: Smartphone Ownership in a Large City

A market research firm is hired to estimate the percent of adults living in a large city who have smartphones. Five hundred randomly selected adult residents in this city are surveyed to determine whether they have smartphones. Of the 500 people surveyed, 421 responded yes — they own smartphones. Using a 95% confidence level, compute a confidence interval estimate for the true proportion of adult residents of this city who have smartphones.

Solution

Step 1 — Name the variable. Let \(X\) = the number of people in the sample who have smartphones. \(X\) is binomial: \(X \sim B\!\left(500, \frac{421}{500}\right)\).

Step 2 — Find \(p'\) and \(q'\).

$$ n = 500 \qquad x = \text{number of successes} = 421 $$ $$ p' = \frac{x}{n} = \frac{421}{500} = 0.842 $$

The value \(p' = 0.842\) is the sample proportion; this is the point estimate of the population proportion.

$$ q' = 1 - p' = 1 - 0.842 = 0.158 $$

Step 3 — Find the z-value. Since \(CL = 0.95\), then \(\alpha = 1 - CL = 1 - 0.95 = 0.05\) and \(\frac{\alpha}{2} = 0.025\). So

$$ z_{\frac{\alpha}{2}} = z_{0.025} = 1.96 $$

Step 4 — Compute the error bound.

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\sqrt{\frac{p'q'}{n}} = (1.96)\sqrt{\frac{(0.842)(0.158)}{500}} = 0.032 $$

Step 5 — Build the interval.

$$ p' - EBP = 0.842 - 0.032 = 0.810 $$ $$ p' + EBP = 0.842 + 0.032 = 0.874 $$

The confidence interval for the true binomial population proportion is \((p' - EBP,\ p' + EBP) = (0.810, 0.874)\).

In rāSHio: choose Stats → Prop Stats, enter successes 421, sample size 500, and confidence level 0.95, then read the interval it reports — \((0.81003, 0.87397)\). If you want \(z_{0.025}\) on its own instead, Distributions → Normal returns 1.96 for a left area of 0.975, since the area to the right of \(z_{0.025}\) is 0.025. A standard normal probability table gives the same value.

Answer: the 95% confidence interval is \((0.810, 0.874)\). We estimate with 95% confidence that between 81% and 87.4% of all adult residents of this city have smartphones.

Explanation of the 95% confidence level: ninety-five percent of the confidence intervals constructed in this way would contain the true value for the population proportion of all adult residents of this city who have smartphones.

Try it in rāSHio

Every confidence interval in this section is one tool call, and rāSHio will do it without a calculator. Choose Stats → Prop Stats, enter successes 421, sample size 500, and confidence level 0.95, and it reports the same interval this example built by hand, 0.81 to 0.874. Then change only the confidence level and watch the interval widen while the centre stays put — \(p'\) comes from the data, \(z_{\frac{\alpha}{2}}\) comes from the confidence level, and the tool makes that split obvious in a way the formula does not.

Figure 7.3.1 — Prop Stats in Confidence Interval mode, run on this example's own numbers: 421 successes out of 500 at a 0.95 level. Note step 3 — the same dialog also does hypothesis tests, and the checkbox is what decides which one you get.

Try It Now 7.3.2

Mei-Lin Chao polls her school to see if students in the school district are for or against the new legislation regarding school uniforms. She surveys 600 students and finds that 480 are against the new legislation.

a. Compute a 90% confidence interval for the true percent of students who are against the new legislation, and interpret the confidence interval.

b. In a sample of 300 students, 68% said they own an iPod and a smartphone. Compute a 97% confidence interval for the true percent of students who own an iPod and a smartphone.

Solution

Part a — Step 1: find \(p'\) and \(q'\). With \(x = 480\) and \(n = 600\),

$$ p' = \frac{480}{600} = 0.80 \qquad q' = 1 - 0.80 = 0.20 $$

Part a — Step 2: find the z-value. \(CL = 0.90\), so \(\alpha = 0.10\) and \(\frac{\alpha}{2} = 0.05\), giving \(z_{0.05} = 1.645\).

Part a — Step 3: compute EBP and the interval.

$$ EBP = (1.645)\sqrt{\frac{(0.80)(0.20)}{600}} = (1.645)(0.01633) = 0.027 $$ $$ (0.80 - 0.027,\ 0.80 + 0.027) = (0.773, 0.827) $$

We estimate with 90% confidence that between 77.3% and 82.7% of all students in the district are against the new legislation.

Part b — Step 1: find \(p'\) and \(q'\). Here the proportion is given directly: \(p' = 0.68\), so \(q' = 0.32\), with \(n = 300\).

Part b — Step 2: find the z-value. \(CL = 0.97\), so \(\alpha = 0.03\) and \(\frac{\alpha}{2} = 0.015\). Then \(z_{0.015} = 2.17\).

Part b — Step 3: compute EBP and the interval.

$$ EBP = (2.17)\sqrt{\frac{(0.68)(0.32)}{300}} = (2.17)(0.02693) = 0.058 $$ $$ (0.68 - 0.058,\ 0.68 + 0.058) = (0.622, 0.738) $$

Answer: a. \((0.773, 0.827)\); b. \((0.622, 0.738)\). We estimate with 97% confidence that between 62.2% and 73.8% of all students own both an iPod and a smartphone.

Example 7.3.2: Registered Voters on Campus

For a class project, Megan Caldwell, a political science student at a large university, wants to estimate the percent of students who are registered voters. She surveys 500 students and finds that 300 are registered voters. Compute a 90% confidence interval for the true percent of students who are registered voters, and interpret the confidence interval.

Solution

Step 1 — Find \(p'\) and \(q'\).

$$ x = 300 \quad \text{and} \quad n = 500 $$ $$ p' = \frac{x}{n} = \frac{300}{500} = 0.600 $$ $$ q' = 1 - p' = 1 - 0.600 = 0.400 $$

Step 2 — Find the z-value. Since \(CL = 0.90\), then \(\alpha = 1 - CL = 1 - 0.90 = 0.10\) and \(\frac{\alpha}{2} = 0.05\). So

$$ z_{\frac{\alpha}{2}} = z_{0.05} = 1.645 $$

Step 3 — Compute the error bound.

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\sqrt{\frac{p'q'}{n}} = (1.645)\sqrt{\frac{(0.60)(0.40)}{500}} = 0.036 $$

Step 4 — Build the interval.

$$ p' - EBP = 0.60 - 0.036 = 0.564 $$ $$ p' + EBP = 0.60 + 0.036 = 0.636 $$

The confidence interval for the true binomial population proportion is \((p' - EBP,\ p' + EBP) = (0.564, 0.636)\).

In rāSHio: choose Stats → Prop Stats, enter successes 300, sample size 500, and confidence level 0.90. The interval comes back \((0.564, 0.636)\). For \(z_{0.05}\) on its own, Distributions → Normal returns 1.645 for a left area of 0.95, since the area to the right of \(z_{0.05}\) is 0.05.

Answer and interpretation: we estimate with 90% confidence that the true percent of all students who are registered voters is between 56.4% and 63.6%. An equally correct wording: we estimate with 90% confidence that between 56.4% and 63.6% of all students are registered voters.

Explanation of the 90% confidence level: ninety percent of all confidence intervals constructed in this way contain the true value for the population percent of students who are registered voters.

7.3.2 The Plus Four Confidence Interval

Definition 7.3.4: Plus Four Confidence Interval

To build a plus four confidence interval for a population proportion, replace \(x\) with \(x + 2\) and \(n\) with \(n + 4\):

$$ p' = \frac{x + 2}{n + 4}, $$

then proceed exactly as before to find \(q'\), \(z_{\frac{\alpha}{2}}\), EBP, and the interval. Use this method when the confidence level desired is at least 90% and the sample size is at least ten.

Two votes each way

Adding two fake yeses and two fake noes drags any extreme sample proportion back toward 0.5, where the normal approximation behaves best. It is a nudge, not a fix, and it fades as \(n\) grows.

Computer studies have demonstrated the effectiveness of this method. Nothing about the procedure changes — you still find \(q'\), still look up \(z_{\frac{\alpha}{2}}\), still compute EBP the same way. The only difference is the two numbers you start with. That is worth emphasizing because the plus-four adjustment is easy to half-apply: students will change \(x\) to \(x + 2\), compute a new \(p'\), and then use the original \(n\) inside the square root, which produces an interval that is neither the standard one nor the corrected one. Both substitutions or neither. If it helps, write the adjusted values at the top of your work as though they were the data you were handed, and never look at the originals again.

Definition 7.3.4 - Plus four: two invented successes and two invented failures pull the proportion toward one half.

There is a certain amount of error introduced into the process of calculating a confidence interval for a proportion. Because we do not know the true proportion for the population, we are forced to use point estimates to calculate the appropriate standard deviation of the sampling distribution. Studies have shown that the resulting estimate of the standard deviation can be flawed.

Fortunately, there is a simple adjustment that produces more accurate confidence intervals. We pretend that we have four additional observations. Two of these are successes and two are failures. The new sample size is \(n + 4\), and the new count of successes is \(x + 2\).

Try It Now 7.3.3

Out of a random sample of 65 first-year students at State University, 31 students have declared a major. Use the plus four method to find a 96% confidence interval for the true proportion of first-year students at State University who have declared a major.

Solution

Step 1 — Apply the plus four adjustment. We have \(x = 31\) and \(n = 65\), so we use \(x = 31 + 2 = 33\) and \(n = 65 + 4 = 69\).

Step 2 — Find \(p'\) and \(q'\).

$$ p' = \frac{33}{69} \approx 0.478 \qquad q' = 1 - 0.478 = 0.522 $$

Step 3 — Find the z-value. \(CL = 0.96\), so \(\alpha = 0.04\) and \(\frac{\alpha}{2} = 0.02\), giving \(z_{0.02} = 2.054\).

Step 4 — Compute EBP.

$$ EBP = (2.054)\sqrt{\frac{(0.478)(0.522)}{69}} = (2.054)(0.0601) = 0.124 $$

Step 5 — Build the interval.

$$ 0.478 - 0.124 = 0.354 \qquad 0.478 + 0.124 = 0.602 $$

Answer: the 96% plus four confidence interval is \((0.354, 0.602)\). We are 96% confident that between 35.4% and 60.2% of all first-year students at State University have declared a major.

Example 7.3.3: Smoking Among Statistics Students

A random sample of 25 statistics students was asked: "Have you smoked a cigarette in the past week?" Six students reported smoking within the past week. Use the plus four method to find a 95% confidence interval for the true proportion of statistics students who smoke.

Solution

Step 1 — Apply the plus four adjustment. Six students out of 25 reported smoking within the past week, so \(x = 6\) and \(n = 25\). Because we are using the plus four method, we use \(x = 6 + 2 = 8\) and \(n = 25 + 4 = 29\).

Step 2 — Find \(p'\) and \(q'\).

$$ p' = \frac{x}{n} = \frac{8}{29} \approx 0.276 $$ $$ q' = 1 - p' = 1 - 0.276 = 0.724 $$

Step 3 — Find the z-value. Since \(CL = 0.95\), we know \(\alpha = 1 - 0.95 = 0.05\) and \(\frac{\alpha}{2} = 0.025\), so

$$ z_{0.025} = 1.96 $$

Step 4 — Compute the error bound.

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\sqrt{\frac{p'q'}{n}} = (1.96)\sqrt{\frac{(0.276)(0.724)}{29}} \approx 0.163 $$

Step 5 — Build the interval.

$$ p' - EBP = 0.276 - 0.163 = 0.113 $$ $$ p' + EBP = 0.276 + 0.163 = 0.439 $$

In rāSHio: choose Stats → Prop Stats and enter the adjusted values — successes 8, sample size 29 — with confidence level 0.95, giving \((0.113, 0.439)\). There is no plus four setting anywhere in the tool; the adjustment happens entirely in the two numbers you type, which is exactly the point.

Answer: we are 95% confident that the true proportion of all statistics students who smoke cigarettes is between 0.113 and 0.439.

Try it in rāSHio

The plus four method is the same tool with different numbers. In rāSHio, choose Stats → Prop Stats and enter the adjusted successes 8 and sample size 29 rather than the raw 6 and 25. Run it both ways and compare the two intervals: on a sample this small the difference between them is exactly what the adjustment is worth, and seeing it is more convincing than being told the estimate was flawed.

Try It Now 7.3.4

The survey referenced in Example 7.3.4 talked to adults aged 18–29 in smaller focus groups but also interviewed additional individuals over the phone. When the study was complete, 588 adults aged 18–29 had answered the question about their potential purchase of an electric vehicle, with 159 saying that they would consider such a purchase. Use the plus four method to find a 90% confidence interval for the true proportion of adults aged 18–29 who would consider the purchase of an electric vehicle based on this larger sample. Compare the results to those in Example 7.3.4.

Solution

Step 1 — Apply the plus four adjustment. With \(x = 159\) and \(n = 588\), we use \(x = 161\) and \(n = 592\).

Step 2 — Find \(p'\) and \(q'\).

$$ p' = \frac{161}{592} \approx 0.272 \qquad q' = 1 - 0.272 = 0.728 $$

Step 3 — Find the z-value. \(CL = 0.90\), so \(\alpha = 0.10\) and \(\frac{\alpha}{2} = 0.05\), giving \(z_{0.05} = 1.645\).

Step 4 — Compute EBP.

$$ EBP = (1.645)\sqrt{\frac{(0.272)(0.728)}{592}} = (1.645)(0.01829) = 0.030 $$

Step 5 — Build the interval.

$$ 0.272 - 0.030 = 0.242 \qquad 0.272 + 0.030 = 0.302 $$

Step 6 — Compare. Example 7.3.4 used 50 people and produced \((0.178, 0.378)\), an interval 0.200 wide. This sample of 588 produces \((0.242, 0.302)\), an interval 0.060 wide. The point estimates are nearly the same, about 0.27 either way, but the larger sample cuts the width to roughly a third. That is the \(\sqrt{n}\) in the denominator doing its work.

Answer: \((0.242, 0.302)\). We are 90% confident that between 24.2% and 30.2% of all adults aged 18–29 would consider purchasing an electric vehicle — a far more useful statement than the wide interval the 50-person sample allowed.

Example 7.3.4: Electric Vehicle Purchases Among Young Adults

A marketing research firm conducted a survey regarding the potential purchase of electric vehicles among adults aged 18–29. In a group of 50 adults aged 18–29, 13 of them reported they would consider the purchase of an electric vehicle. Use the plus four method to find a 90% confidence interval for the true proportion of adults aged 18–29 who would consider the purchase of an electric vehicle.

Solution

Step 1 — Apply the plus four adjustment. With \(x = 13\) and \(n = 50\), we have \(x = 13 + 2 = 15\) and \(n = 50 + 4 = 54\).

Step 2 — Find \(p'\) and \(q'\).

$$ p' = \frac{15}{54} \approx 0.278 $$ $$ q' = 1 - p' = 1 - 0.278 = 0.722 $$

Step 3 — Find the z-value. Since \(CL = 0.90\), we know \(\alpha = 1 - 0.90 = 0.10\) and \(\frac{\alpha}{2} = 0.05\), so

$$ z_{0.05} = 1.645 $$

Step 4 — Compute the error bound.

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\left(\sqrt{\frac{p'q'}{n}}\right) = (1.645)\left(\sqrt{\frac{(0.278)(0.722)}{54}}\right) \approx 0.100 $$

Step 5 — Build the interval.

$$ p' - EBP = 0.278 - 0.100 = 0.178 $$ $$ p' + EBP = 0.278 + 0.100 = 0.378 $$

In rāSHio: choose Stats → Prop Stats, enter successes 15, sample size 54, and confidence level 0.90. The interval is \((0.178, 0.378)\).

Answer: we are 90% confident that between 17.8% and 37.8% of adults aged 18–29 would consider the purchase of an electric vehicle.

7.3.3 Calculating the Sample Size n

Definition 7.3.5: Sample Size for a Proportion

The sample size needed to estimate a population proportion with error bound EBP at confidence level \(1 - \alpha\) is

$$ n = \frac{\left(z_{\frac{\alpha}{2}}\right)^{2}(p'q')}{EBP^{2}}. $$
Plan for the worst case

Choosing \(p' = 0.5\) is not a guess about the population. It is a decision to buy enough sample to hit your margin of error even if the population is as awkward as it could possibly be.

Always round the answer up to the next whole number — rounding down would leave you short of the precision you asked for.

There is one catch, and it is the interesting part. The formula needs \(p'\), but \(p'\) comes from a sample we have not collected yet. The standard move is to use \(p' = q' = 0.5\), because \(p'q' = (0.5)(0.5) = 0.25\) is the largest the product can ever be. Try a few others and you will see it: \((0.6)(0.4) = 0.24\), \((0.3)(0.7) = 0.21\), \((0.2)(0.8) = 0.16\). Using the largest product gives the largest \(n\), which is the safe direction to be wrong in — you end up with a sample at least big enough no matter what the true proportion turns out to be.

Notice also where \(n\) sits in the formula: EBP is squared in the denominator. Halving your target margin of error therefore multiplies the required sample size by four, and cutting it to a tenth multiplies the sample size by a hundred. This is the same square-root relationship from the law of large numbers, read backwards, and it is the reason national polls settle around a thousand respondents rather than ten thousand. At \(n = 1{,}000\) with \(p' = 0.5\) and 95% confidence, the margin of error is about three percentage points; getting that down to one point would take nearly ten thousand interviews, and the extra precision is rarely worth nine thousand phone calls. Sample size planning is almost always a budget conversation wearing a formula.

Definition 7.3.5 - The product p'q' peaks at one half, which is why sample-size planning assumes it.

If researchers want a specific margin of error, they can turn the error bound formula around and solve for the sample size they need before collecting any data at all.

The error bound formula for a population proportion is

$$ EBP = \left(z_{\frac{\alpha}{2}}\right)\left(\sqrt{\frac{p'q'}{n}}\right). $$

Solving for \(n\) gives an equation for the sample size.

Try It Now 7.3.5

Suppose an internet marketing company wants to determine the current percentage of customers who click on ads on their smartphones. How many customers should the company survey in order to be 90% confident that the estimated proportion is within five percentage points of the true population proportion of customers who click on ads on their smartphones?

Solution

Step 1 — Read off the target. Five percentage points means \(EBP = 0.05\). The confidence level is 90%, so \(\alpha = 0.10\), \(\frac{\alpha}{2} = 0.05\), and \(z_{0.05} = 1.645\).

Step 2 — Use the worst-case proportion. With no prior estimate, take \(p' = q' = 0.5\), so \(p'q' = 0.25\).

Step 3 — Substitute.

$$ n = \frac{(1.645)^{2}(0.25)}{(0.05)^{2}} = \frac{(2.706)(0.25)}{0.0025} = 270.6 $$

Step 4 — Round up.

Answer: the company should survey 271 customers to be 90% confident the estimated proportion is within five percentage points of the true proportion.

Example 7.3.5: How Many Customers Should the Phone Company Survey?

Suppose a mobile phone company wants to determine the current percentage of customers aged 50+ who use text messaging on their cell phones. How many customers aged 50+ should the company survey in order to be 90% confident that the estimated sample proportion is within three percentage points of the true population proportion of customers aged 50+ who use text messaging on their cell phones?

Solution

Step 1 — Read off what the problem gives us. From the problem, \(EBP = 0.03\) (3% = 0.03), and \(z_{\frac{\alpha}{2}} = z_{0.05} = 1.645\) because the confidence level is 90%.

Step 2 — Handle the unknown \(p'\). To find \(n\) we need the estimated sample proportion \(p'\), and \(q' = 1 - p'\). But we do not know \(p'\) yet. Since we multiply \(p'\) and \(q'\) together, we make them both equal to 0.5, because \(p'q' = (0.5)(0.5) = 0.25\) is the largest possible product. The largest product gives the largest \(n\), which gives a sample big enough to be 90% confident we are within three percentage points of the true population proportion.

Step 3 — Substitute into the formula.

$$ n = \frac{z^{2}p'q'}{EBP^{2}} \quad \text{gives} \quad n = \frac{(1.645)^{2}(0.5)(0.5)}{(0.03)^{2}} = 751.7 $$

Step 4 — Round up to the next whole number.

Answer: the sample size should be 752 cell phone customers aged 50+ to be 90% confident that the estimated sample proportion is within three percentage points of the true population proportion of all customers aged 50+ who use text messaging on their cell phones.

Problem Set 7.3

Use the following information to answer the next two exercises: Marketing companies are interested in knowing the population percent of women who make the majority of household purchasing decisions.

Problem 1. When designing a study to determine this population proportion, what is the minimum number you would need to survey to be 90% confident that the population proportion is estimated to within 0.05?

Problem 1 Solution

Step 1 — Read off the target. The margin of error is \(EBP = 0.05\), and 90% confidence gives \(\alpha = 0.10\), \(\frac{\alpha}{2} = 0.05\), so \(z_{0.05} = 1.645\).

Step 2 — Use the worst-case proportion. No survey has been run yet, so there is no \(p'\). Take \(p' = q' = 0.5\), which makes \(p'q' = 0.25\), the largest that product can be.

Step 3 — Substitute.

$$ n = \frac{(1.645)^{2}(0.25)}{(0.05)^{2}} = \frac{0.6765}{0.0025} = 270.6 $$

Step 4 — Round up. A sample size must be a whole number, and rounding down would miss the target margin of error.

Answer: survey a minimum of 271 women.

Problem 2. If it were later determined that it was important to be more than 90% confident and a new survey were commissioned, how would it affect the minimum number you need to survey? Why?

Problem 2 Solution

Step 1 — See what changes. Raising the confidence level above 90% shrinks \(\alpha\), which pushes \(z_{\frac{\alpha}{2}}\) further out into the tail. A higher confidence level always means a larger critical value.

Step 2 — Trace it through the sample-size formula. In \(n = \frac{\left(z_{\frac{\alpha}{2}}\right)^{2}(p'q')}{EBP^{2}}\), the critical value sits in the numerator and is squared. If \(z\) goes up and the target error bound stays at 0.05, \(n\) must go up too.

Answer: the sample size needed would increase. As the confidence level increases, \(\alpha\) decreases and \(z_{\frac{\alpha}{2}}\) increases, so to hold the same error bound the sample has to get bigger.

Use the following information to answer the next five exercises: Suppose the marketing company did do a survey. They randomly surveyed 200 households and found that in 120 of them, the woman made the majority of the purchasing decisions. We are interested in the population proportion of households where women make the majority of the purchasing decisions.

Problem 3. Identify the following:

a) \(X =\) ____

b) \(n =\) ____

c) \(p' =\) ____

Problem 3 Solution

Step 1 — Identify the successes. A "success" here is a household where the woman makes the majority of the purchasing decisions. The survey found 120 of those.

Step 2 — Identify the sample size. They surveyed 200 households.

Step 3 — Compute the sample proportion.

$$ p' = \frac{x}{n} = \frac{120}{200} = 0.6 $$

Answer: a) \(X = 120\); b) \(n = 200\); c) \(p' = 0.6\).

Problem 4. Define the random variables \(X\) and \(P'\) in words.

Problem 4 Solution

Step 1 — Define \(X\). \(X\) counts things, so it is a number of households.

Step 2 — Define \(P'\). \(P'\) is that count divided by the sample size, so it is a proportion of the sample.

Answer: \(X\) is the number of "successes" — households in the sample where the woman makes the majority of the purchasing decisions. \(P'\) is the proportion of households in the sample where the woman makes the majority of the purchasing decisions.

Problem 5. Which distribution should you use for this problem?

Problem 5 Solution

Step 1 — Recognize the parameter. The question is about a percent of households, not an average of measurements, so this is a proportion problem.

Step 2 — Check the condition. \(np' = 200(0.6) = 120 > 5\) and \(nq' = 200(0.4) = 80 > 5\), so the normal approximation to the binomial is allowed.

Step 3 — Write the distribution.

$$ P' \sim N\!\left(0.6,\ \sqrt{\frac{(0.6)(0.4)}{200}}\right) = N(0.6,\ 0.0346) $$

Answer: use the normal distribution for proportions, \(P' \sim N\!\left(0.6, \sqrt{\frac{(0.6)(0.4)}{200}}\right)\).

Problem 6. Construct a 95% confidence interval for the population proportion of households where the women make the majority of the purchasing decisions. State the confidence interval, sketch the graph, and calculate the error bound.

Problem 6 Solution

Step 1 — Collect \(p'\) and \(q'\). \(p' = 0.6\) and \(q' = 0.4\), with \(n = 200\).

Step 2 — Find the critical value. \(CL = 0.95\), so \(\alpha = 0.05\), \(\frac{\alpha}{2} = 0.025\), and \(z_{0.025} = 1.96\).

Step 3 — Compute the error bound.

$$ EBP = (1.96)\sqrt{\frac{(0.6)(0.4)}{200}} = (1.96)(0.034641) = 0.0679 $$

Step 4 — Build the interval.

$$ (0.6 - 0.0679,\ 0.6 + 0.0679) = (0.5321,\ 0.6679) $$

Step 5 — Sketch the graph. Draw a normal curve centred at 0.6. Mark 0.5321 and 0.6679 on the horizontal axis, shade the region between them, and label that shaded middle area 0.95, with 0.025 in each tail.

Answer: the 95% confidence interval is \((0.5321, 0.6679)\), with error bound \(EBP = 0.0679\). We estimate with 95% confidence that between 53.21% and 66.79% of all households have the woman making the majority of purchasing decisions.

Problem 7. List two difficulties the company might have in obtaining random results, if this survey were done by email.

Problem 7 Solution

Step 1 — Ask who can be reached. An email survey only reaches households with an email address the company already has, so households without email — or without an address on that list — have no chance of being selected. That is not a random sample of all households.

Step 2 — Ask who responds. Even among those reached, people choose whether to reply. The households that bother to answer a survey about purchasing decisions are unlikely to be a fair cross-section of the ones that ignore it.

Answer: two difficulties are (1) coverage — households with no email address, or none on the company's list, can never be selected, so the frame is not the whole population; and (2) non-response bias — the households that choose to reply may differ systematically from those that do not.

Use the following information to answer the next five exercises: Of 1,050 randomly selected adults, 360 identified themselves as manual laborers, 280 identified themselves as non-manual wage earners, 250 identified themselves as mid-level managers, and 160 identified themselves as executives. In the survey, 82% of manual laborers preferred trucks, 62% of non-manual wage earners preferred trucks, 54% of mid-level managers preferred trucks, and 26% of executives preferred trucks.

Problem 8. We are interested in finding the 95% confidence interval for the percent of executives who prefer trucks. Define random variables \(X\) and \(P'\) in words.

Problem 8 Solution

Step 1 — Identify the group being studied. The question is about executives, so the relevant sample size is the 160 executives, not the 1,050 adults.

Step 2 — Define both variables. \(X\) is a count; \(P'\) is that count over 160.

Answer: \(X\) is the number of "successes" — executives in the sample who prefer trucks. \(P'\) is the proportion of the sampled executives who prefer trucks.

Problem 9. Which distribution should you use for this problem?

Problem 9 Solution

Step 1 — Recognize the parameter. We want a percent of executives, so this is a proportion problem.

Step 2 — Check the condition. With \(n = 160\) and \(p' = 0.26\): \(np' = 41.6 > 5\) and \(nq' = 118.4 > 5\).

Step 3 — Write the distribution.

$$ P' \sim N\!\left(0.26,\ \sqrt{\frac{(0.26)(0.74)}{160}}\right) = N(0.26,\ 0.0347) $$

Answer: use the normal distribution for proportions, \(P' \sim N\!\left(0.26, \sqrt{\frac{(0.26)(0.74)}{160}}\right)\).

Problem 10. Construct a 95% confidence interval. State the confidence interval, sketch the graph, and calculate the error bound.

Problem 10 Solution

Step 1 — Collect \(p'\) and \(q'\). \(p' = 0.26\), \(q' = 0.74\), \(n = 160\).

Step 2 — Find the critical value. \(CL = 0.95\) gives \(z_{0.025} = 1.96\).

Step 3 — Compute the error bound.

$$ EBP = (1.96)\sqrt{\frac{(0.26)(0.74)}{160}} = (1.96)(0.034677) = 0.068 $$

Step 4 — Build the interval.

$$ (0.26 - 0.068,\ 0.26 + 0.068) = (0.192,\ 0.328) $$

Step 5 — Sketch the graph. A normal curve centred at 0.26, shaded between 0.192 and 0.328, with 0.95 in the middle and 0.025 in each tail.

A note on the calculator. 1-PropZInt needs a whole number for \(x\), and 26% of 160 is 41.6. Entering \(x = 42\) and \(n = 160\) gives \(p' = 0.2625\) and the interval \((0.1943, 0.3307)\) — the same answer to within the rounding forced by that whole-number requirement.

Answer: the 95% confidence interval is \((0.192, 0.328)\), with \(EBP = 0.068\). We estimate with 95% confidence that between 19.2% and 32.8% of all executives prefer trucks.

Problem 11. Suppose we want to lower the sampling error. What is one way to accomplish that?

Problem 11 Solution

Step 1 — Look at where the sample size sits. The error bound is \(EBP = z_{\frac{\alpha}{2}}\sqrt{\frac{p'q'}{n}}\), and \(n\) is in the denominator under a square root.

Step 2 — Increase it. A larger \(n\) makes the whole square root smaller, which makes the error bound smaller, without touching the confidence level.

Answer: increase the sample size. (Lowering the confidence level would also shrink the interval, but it buys the narrower interval with less certainty rather than with more information.)

Problem 12. The sampling error given in the survey is \(\pm 2\%\). Explain what the \(\pm 2\%\) means.

Problem 12 Solution

Step 1 — Name what the number is. The \(\pm 2\%\) is the error bound — the distance the survey adds to and subtracts from its sample proportion to build the interval.

Step 2 — Say what it claims. It says the true population proportion is estimated to lie within 2 percentage points of the reported sample percent, at the survey's stated confidence level.

Answer: the sampling error means the true population proportion can be up to 2 percentage points above or below the sample proportion the survey reported.

Use the following information to answer the next five exercises: A poll of 1,200 voters asked what the most significant issue was in the upcoming election. Sixty-five percent answered the economy. We are interested in the population proportion of voters who feel the economy is the most important.

Problem 13. Define the random variable \(X\) in words.

Problem 13 Solution

Step 1 — \(X\) counts. In a proportion problem \(X\) is always the number of successes in the sample.

Answer: \(X\) is the number of voters in the sample of 1,200 who said the economy is the most significant issue in the upcoming election.

Problem 14. Define the random variable \(P'\) in words.

Problem 14 Solution

Step 1 — \(P'\) is a proportion. It is \(X\) divided by the sample size.

Answer: \(P'\) is the proportion of the 1,200 voters sampled who said the economy is the most important issue in the upcoming election.

Problem 15. Which distribution should you use for this problem?

Problem 15 Solution

Step 1 — Check the condition. With \(n = 1{,}200\) and \(p' = 0.65\): \(np' = 780 > 5\) and \(nq' = 420 > 5\).

Step 2 — Write the distribution.

$$ P' \sim N\!\left(0.65,\ \sqrt{\frac{(0.65)(0.35)}{1{,}200}}\right) = N(0.65,\ 0.01377) $$

Answer: use the normal distribution for proportions, \(P' \sim N\!\left(0.65, \sqrt{\frac{(0.65)(0.35)}{1{,}200}}\right)\).

Problem 16. Construct a 90% confidence interval, and state the confidence interval and the error bound.

Problem 16 Solution

Step 1 — Collect \(p'\) and \(q'\). \(p' = 0.65\), \(q' = 0.35\), \(n = 1{,}200\).

Step 2 — Find the critical value. \(CL = 0.90\), so \(\alpha = 0.10\), \(\frac{\alpha}{2} = 0.05\), and \(z_{0.05} = 1.645\).

Step 3 — Compute the error bound.

$$ EBP = (1.645)\sqrt{\frac{(0.65)(0.35)}{1{,}200}} = (1.645)(0.013769) = 0.02265 $$

Step 4 — Build the interval.

$$ (0.65 - 0.02265,\ 0.65 + 0.02265) = (0.62735,\ 0.67265) $$

Answer: the 90% confidence interval is \((0.62735, 0.67265)\), with \(EBP = 0.02265\).

Problem 17. What would happen to the confidence interval if the level of confidence were 95%?

Problem 17 Solution

Step 1 — See what a higher confidence level changes. At 95%, \(z_{0.025} = 1.96\) replaces \(z_{0.05} = 1.645\). The sample data do not change, so \(p'\), \(q'\), and \(n\) are all the same.

Step 2 — Recompute the error bound.

$$ EBP = (1.96)(0.013769) = 0.02699 $$

Step 3 — Compare. The 95% interval is \((0.623, 0.677)\), wider than the 90% interval \((0.627, 0.673)\).

Answer: the confidence interval would get wider. Buying more confidence in the same data always costs precision.

Use the following information to answer the next 16 exercises: The Ice Chalet offers dozens of different beginning ice-skating classes. All of the class names are put into a bucket. The 5 P.M., Monday night, ages 8 to 12, beginning ice-skating class was picked. In that class were 64 girls and 16 boys. Suppose that we are interested in the true proportion of girls, ages 8 to 12, in all beginning ice-skating classes at the Ice Chalet. Assume that the children in the selected class are a random sample of the population.

Problem 18. What is being counted?

Problem 18 Solution

Answer: the number of girls, ages 8 to 12, in the 5 P.M. Monday night beginning ice-skating class.

Problem 19. In words, define the random variable \(X\).

Problem 19 Solution

Step 1 — \(X\) counts the successes. A "success" here is a child in the class who is a girl.

Answer: \(X\) is the number of girls, ages 8 to 12, among the 80 children in the selected beginning ice-skating class.

Problem 20. Calculate the following:

a) \(x =\) ____

b) \(n =\) ____

c) \(p' =\) ____

Problem 20 Solution

Step 1 — Count the successes. The class has 64 girls, so \(x = 64\).

Step 2 — Count the whole sample. The class has 64 girls and 16 boys, so \(n = 64 + 16 = 80\).

Step 3 — Divide.

$$ p' = \frac{64}{80} = 0.8 $$

Answer: a) \(x = 64\); b) \(n = 80\); c) \(p' = 0.8\).

Problem 21. State the estimated distribution of \(X\). \(X \sim\) ____

Problem 21 Solution

Step 1 — Identify the model. Each of the 80 children is either a girl (success) or not, so \(X\) is binomial with \(n = 80\) trials.

Step 2 — Use \(p'\) as the estimate of \(p\). We do not know the true \(p\), so we estimate it with \(p' = 0.8\).

Answer: \(X \sim B(80,\ 0.8)\).

Problem 22. Define a new random variable \(P'\). What is \(p'\) estimating?

Problem 22 Solution

Step 1 — Build \(P'\). Define \(P' = \frac{X}{n} = \frac{X}{80}\), the proportion of girls in the sample.

Step 2 — Say what it estimates. A sample proportion is a point estimate of the corresponding population proportion.

Answer: \(p'\) is estimating \(p\), the true proportion of girls, ages 8 to 12, in all beginning ice-skating classes at the Ice Chalet.

Problem 23. In words, define the random variable \(P'\).

Problem 23 Solution

Answer: \(P'\) is the proportion of girls, ages 8 to 12, in the sample of 80 children taken from the beginning ice-skating classes at the Ice Chalet.

Problem 24. State the estimated distribution of \(P'\). Construct a 92% confidence interval for the true proportion of girls in the ages 8 to 12 beginning ice-skating classes at the Ice Chalet.

Problem 24 Solution

Step 1 — State the distribution. With \(p' = 0.8\) and \(n = 80\),

$$ P' \sim N\!\left(0.8,\ \sqrt{\frac{(0.8)(0.2)}{80}}\right) = N(0.8,\ 0.044721) $$

Step 2 — Find the critical value for 92% confidence. \(\alpha = 1 - 0.92 = 0.08\) and \(\frac{\alpha}{2} = 0.04\), so \(z_{0.04} = 1.751\).

Step 3 — Compute the error bound.

$$ EBP = (1.751)\sqrt{\frac{(0.8)(0.2)}{80}} = (1.751)(0.044721) = 0.07829 $$

Step 4 — Build the interval.

$$ (0.8 - 0.07829,\ 0.8 + 0.07829) = (0.72171,\ 0.87829) $$

Answer: \(P' \sim N\!\left(0.8, \sqrt{\frac{(0.8)(0.2)}{80}}\right)\), and the 92% confidence interval is \((0.72171, 0.87829)\).

Problem 25. How much area is in both tails (combined)?

Problem 25 Solution

Step 1 — Subtract the confidence level from 1. The confidence level is 92%, so the area left over for the two tails is \(\alpha = 1 - 0.92 = 0.08\).

Answer: 0.08.

Problem 26. How much area is in each tail?

Problem 26 Solution

Step 1 — Split the leftover area evenly. The normal curve is symmetric, so the two tails share \(\alpha\) equally: \(\frac{\alpha}{2} = \frac{0.08}{2}\).

Answer: 0.04 in each tail.

Problem 27. Calculate the following:

a) lower limit

b) upper limit

c) error bound

Problem 27 Solution

Step 1 — Recall the error bound from Problem 7.3.24.

$$ EBP = (1.751)\sqrt{\frac{(0.8)(0.2)}{80}} = 0.07829 $$

Step 2 — Subtract and add.

$$ 0.8 - 0.07829 = 0.72171 \qquad 0.8 + 0.07829 = 0.87829 $$

Answer: a) lower limit \(= 0.72171\); b) upper limit \(= 0.87829\); c) error bound \(= 0.07829\).

Problem 28. The 92% confidence interval is ____.

Problem 28 Solution

Step 1 — Read the limits off Problem 7.3.27 and round to two decimal places.

Answer: \((0.72,\ 0.88)\).

Problem 29. Fill in the blanks on the graph with the areas, upper and lower limits of the confidence interval, and the sample proportion.

Exercise Figure 7.3.2 - Fill in the confidence level, the two tail areas, and the three values on the axis. Exercise Figure 7.3.2 - Fill in the confidence level, the two tail areas, and the three values on the axis.

Exercise Figure 7.3.2 - Fill in the confidence level, the two tail areas, and the three values on the axis.

Problem 29 Solution

Step 1 — Label the centre. The peak of the curve sits at the sample proportion, \(p' = 0.8\).

Step 2 — Label the boundaries. The lower limit is 0.72 and the upper limit is 0.88 (from Problem 7.3.28).

Step 3 — Label the areas. The shaded middle region carries the confidence level, 0.92. Each unshaded tail carries \(\frac{\alpha}{2} = 0.04\).

Answer: centre \(p' = 0.8\); lower bound 0.72; upper bound 0.88; middle area \(C.L. = 0.92\); each tail area \(\frac{\alpha}{2} = 0.04\).

Problem 30. In one complete sentence, explain what the interval means.

Problem 30 Solution

Step 1 — State the confidence, the parameter, and the range. A correct interpretation names all three and describes the population, not the sample.

Answer: with 92% confidence, we estimate the proportion of girls, ages 8 to 12, in all beginning ice-skating classes at the Ice Chalet to be between 72% and 88%.

Problem 31. Using the same \(p'\) and level of confidence, suppose that \(n\) were increased to 100. Would the error bound become larger or smaller? How do you know?

Problem 31 Solution

Step 1 — Change only \(n\). Keep \(p' = 0.8\) and \(z_{0.04} = 1.751\), and raise \(n\) from 80 to 100.

Step 2 — Recompute.

$$ EBP = (1.751)\sqrt{\frac{(0.8)(0.2)}{100}} = (1.751)(0.04) = 0.070 $$

Step 3 — Compare. The old error bound was 0.07829; the new one is 0.070.

Answer: the error bound would become smaller. The sample size is in the denominator under a square root, so a larger \(n\) shrinks the standard deviation of \(P'\) and tightens the interval.

Problem 32. Using the same \(p'\) and \(n = 80\), how would the error bound change if the confidence level were increased to 98%? Why?

Problem 32 Solution

Step 1 — Change only the confidence level. At 98%, \(\alpha = 0.02\) and \(\frac{\alpha}{2} = 0.01\), so \(z_{0.01} = 2.326\), up from 1.751.

Step 2 — Recompute.

$$ EBP = (2.326)\sqrt{\frac{(0.8)(0.2)}{80}} = (2.326)(0.044721) = 0.104 $$

Answer: the error bound would increase, from 0.078 to about 0.104. Raising the confidence level pushes the critical value further into the tail, which widens the interval.

Problem 33. If you decreased the allowable error bound, why would the minimum sample size increase (keeping the same level of confidence)?

Problem 33 Solution

Step 1 — Look at the sample-size formula.

$$ n = \frac{\left(z_{\frac{\alpha}{2}}\right)^{2}(p'q')}{EBP^{2}} $$

Step 2 — Shrink the error bound. EBP sits in the denominator and is squared, so dividing the target error bound in half multiplies \(n\) by four.

Answer: a smaller allowable error bound means a smaller denominator in the sample-size formula, so \(n\) must grow. Demanding more precision at the same confidence level always costs more data.

Problem 34. Insurance companies are interested in knowing the population percent of drivers who always buckle up before riding in a car.

a) When designing a study to determine this population proportion, what is the minimum number you would need to survey to be 95% confident that the population proportion is estimated to within 0.03?

b) If it were later determined that it was important to be more than 95% confident and a new survey was commissioned, how would that affect the minimum number you would need to survey? Why?

Problem 34 Solution

Part a — Step 1: read off the target. \(EBP = 0.03\), and 95% confidence gives \(z_{0.025} = 1.96\).

Part a — Step 2: use the worst case. With no prior survey, \(p' = q' = 0.5\), so \(p'q' = 0.25\).

Part a — Step 3: substitute and round up.

$$ n = \frac{(1.96)^{2}(0.25)}{(0.03)^{2}} = \frac{0.9604}{0.0009} = 1{,}067.1 \ \longrightarrow\ 1{,}068 $$

Part b — See what changes. A confidence level above 95% pushes \(z_{\frac{\alpha}{2}}\) further out, and the critical value is squared in the numerator.

Answer: a) survey a minimum of 1,068 drivers; b) the sample size would need to increase, since the critical value increases as the confidence level increases.

Problem 35. Suppose that the insurance companies did do a survey. They randomly surveyed 400 drivers and found that 320 claimed they always buckle up. We are interested in the population proportion of drivers who claim they always buckle up.

a) i. \(x =\) ____ ii. \(n =\) ____ iii. \(p' =\) ____

b) Define the random variables \(X\) and \(P'\), in words.

c) Which distribution should you use for this problem? Explain your choice.

d) Construct a 95% confidence interval for the population proportion who claim they always buckle up. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

e) If this survey were done by telephone, list three difficulties the companies might have in obtaining random results.

Problem 35 Solution

Part a — Read off the counts. \(x = 320\) drivers claimed they always buckle up out of \(n = 400\), so \(p' = \frac{320}{400} = 0.8\).

Part b — Define the variables. \(X\) is the number of drivers in the sample who claim they always buckle up. \(P'\) is the proportion of the sampled drivers who claim they always buckle up.

Part c — Pick the distribution. This is a proportion, and \(np' = 320 > 5\) with \(nq' = 80 > 5\), so the normal approximation to the binomial applies:

$$ P' \sim N\!\left(0.8,\ \sqrt{\frac{(0.8)(0.2)}{400}}\right) = N(0.8,\ 0.02) $$

Part d — Build the interval. \(CL = 0.95\) gives \(z_{0.025} = 1.96\).

$$ EBP = (1.96)(0.02) = 0.0392 $$ $$ (0.8 - 0.0392,\ 0.8 + 0.0392) = (0.7608,\ 0.8392) $$

Sketch a normal curve centred at 0.8, shade between 0.7608 and 0.8392, and label the shaded area 0.95 with 0.025 in each tail.

Part e — Telephone difficulties. People without a phone, or with an unlisted or mobile-only number, may never be reachable; many of those reached will refuse or hang up, and refusers may differ from responders; and people tend to over-report socially approved behaviour like buckling up when a live person is asking.

Answer: a) i. \(x = 320\), ii. \(n = 400\), iii. \(p' = 0.8\); c) normal for proportions, \(N(0.8, 0.02)\); d) i. \((0.7608, 0.8392)\), iii. \(EBP = 0.0392\).

Problem 36. According to a recent survey of 1,200 people, 61% feel that the president is doing an acceptable job. We are interested in the population proportion of people who feel the president is doing an acceptable job.

a) Define the random variables \(X\) and \(P'\) in words.

b) Which distribution should you use for this problem? Explain your choice.

c) Construct a 90% confidence interval for the population proportion of people who feel the president is doing an acceptable job. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

Problem 36 Solution

Part a — Define the variables. \(X\) is the number of people in the sample who feel the president is doing an acceptable job. \(P'\) is the proportion of the sampled people who feel the president is doing an acceptable job.

Part b — Pick the distribution. This is a proportion, with \(n = 1{,}200\) and \(p' = 0.61\). Since \(np' = 732 > 5\) and \(nq' = 468 > 5\),

$$ P' \sim N\!\left(0.61,\ \sqrt{\frac{(0.61)(0.39)}{1{,}200}}\right) = N(0.61,\ 0.01408) $$

Part c — Build the interval. \(CL = 0.90\) gives \(z_{0.05} = 1.645\).

$$ EBP = (1.645)(0.014080) = 0.023 $$ $$ (0.61 - 0.023,\ 0.61 + 0.023) = (0.587,\ 0.633) $$

Sketch a normal curve centred at 0.61, shaded between 0.587 and 0.633, with area 0.90 in the middle and 0.05 in each tail.

Answer: c) i. the 90% confidence interval is \((0.59, 0.63)\) to two decimal places; iii. \(EBP \approx 0.02\).

Problem 37. An article regarding interracial dating and marriage recently appeared in the Washington Post. Of the 1,709 randomly selected adults, 315 identified themselves as Hispanic/Latino, 323 identified themselves as Black, 254 identified themselves as Asian, and 779 identified themselves as White. In this survey, 86% of Black people said that they would welcome a White person into their families. Among Asian people, 77% would welcome a White person into their families, 71% would welcome a Hispanic/Latino person, and 66% would welcome a Black person.

a) We are interested in finding the 95% confidence interval for the percent of all Black adults who would welcome a White person into their families. Define the random variables \(X\) and \(P'\), in words.

b) Which distribution should you use for this problem? Explain your choice.

c) Construct a 95% confidence interval. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

Problem 37 Solution

Part a — Define the variables. \(X\) is the number of Black adults in the sample who said they would welcome a White person into their families. \(P'\) is the proportion of the sampled Black adults who said they would welcome a White person into their families.

Part b — Pick the distribution. The relevant sample is the 323 adults who identified as Black, not all 1,709, and \(p' = 0.86\). Since \(np' = 277.8 > 5\) and \(nq' = 45.2 > 5\),

$$ P' \sim N\!\left(0.86,\ \sqrt{\frac{(0.86)(0.14)}{323}}\right) = N(0.86,\ 0.01931) $$

Part c — Build the interval. \(CL = 0.95\) gives \(z_{0.025} = 1.96\).

$$ EBP = (1.96)(0.019307) = 0.038 $$ $$ (0.86 - 0.038,\ 0.86 + 0.038) = (0.822,\ 0.898) $$

Sketch a normal curve centred at 0.86, shaded between 0.822 and 0.898, labelled 0.95 in the middle and 0.025 per tail.

Answer: c) i. the 95% confidence interval is \((0.822, 0.898)\); iii. \(EBP = 0.038\). We estimate with 95% confidence that between 82.2% and 89.8% of all Black adults would welcome a White person into their families.

Problem 38. Refer to the information in Problem 7.3.37.

a) Construct three 95% confidence intervals. i. percent of all Asians who would welcome a White person into their families. ii. percent of all Asians who would welcome a Hispanic/Latino into their families. iii. percent of all Asians who would welcome a Black person into their families.

b) Even though the three point estimates are different, do any of the confidence intervals overlap? Which?

c) For any intervals that do overlap, in words, what does this imply about the significance of the differences in the true proportions?

d) For any intervals that do not overlap, in words, what does this imply about the significance of the differences in the true proportions?

Problem 38 Solution

Part a — Three intervals, same sample size. All three use the 254 adults who identified as Asian, with \(z_{0.025} = 1.96\).

i. White person: \(p' = 0.77\), \(EBP = (1.96)\sqrt{\frac{(0.77)(0.23)}{254}} = 0.052\), giving \((0.72, 0.82)\).

ii. Hispanic/Latino person: \(p' = 0.71\), \(EBP = (1.96)\sqrt{\frac{(0.71)(0.29)}{254}} = 0.056\), giving \((0.65, 0.77)\).

iii. Black person: \(p' = 0.66\), \(EBP = (1.96)\sqrt{\frac{(0.66)(0.34)}{254}} = 0.058\), giving \((0.60, 0.72)\).

Part b — Look for overlap. Compare the endpoints: \((0.72, 0.82)\) and \((0.65, 0.77)\) share the whole stretch from 0.72 to 0.77. \((0.65, 0.77)\) and \((0.60, 0.72)\) share the stretch from 0.65 to 0.72. Intervals i and iii only meet at 0.72 — carried to four decimals they are \((0.7182, 0.8218)\) and \((0.6017, 0.7183)\), so they touch across a width of about one ten-thousandth, which is no meaningful overlap at all.

Part c — What overlap means. When two intervals overlap, the same value of the true proportion is plausible for both groups, so the data do not establish a real difference.

Part d — What no overlap means. When two intervals do not overlap, no single value is plausible for both, so the difference between the two true proportions is significant.

Answer: a) i. \((0.72, 0.82)\), ii. \((0.65, 0.77)\), iii. \((0.60, 0.72)\); b) yes — intervals i and ii overlap, and ii and iii overlap; c) there does not appear to be a significant difference between the proportion of Asian adults who would welcome a White person and the proportion who would welcome a Hispanic/Latino person; d) there is a significant difference between the proportion who would welcome a White person and the proportion who would welcome a Black person.

Problem 39. Stanford University conducted a study of whether running is healthy for people over age 50. During the first eight years of the study, 1.5% of the 451 members of the 50-Plus Fitness Association died. We are interested in the proportion of people over 50 who ran and died in the same eight-year period.

a) Define the random variables \(X\) and \(P'\) in words.

b) Which distribution should you use for this problem? Explain your choice.

c) Construct a 97% confidence interval for the population proportion of people over 50 who ran and died in the same eight-year period. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

d) Explain what a "97% confidence interval" means for this study.

Problem 39 Solution

Part a — Define the variables. \(X\) is the number of people over 50 in the study who ran and died during the eight-year period. \(P'\) is the proportion of the sampled 50-Plus Fitness Association members who ran and died during that period.

Part b — Pick the distribution. With \(n = 451\) and \(p' = 0.015\), check the condition: \(np' = 6.765 > 5\) and \(nq' = 444.2 > 5\). It clears the bar, though not by much — with a proportion this small, a slightly smaller study would not have qualified.

$$ P' \sim N\!\left(0.015,\ \sqrt{\frac{(0.015)(0.985)}{451}}\right) = N(0.015,\ 0.005724) $$

Part c — Build the interval. \(CL = 0.97\), so \(\alpha = 0.03\), \(\frac{\alpha}{2} = 0.015\), and \(z_{0.015} = 2.17\).

$$ EBP = (2.17)(0.0057237) = 0.0124 $$ $$ (0.015 - 0.0124,\ 0.015 + 0.0124) = (0.0026,\ 0.0274) $$

Sketch a normal curve centred at 0.015, shaded between 0.0026 and 0.0274, with 0.97 in the middle and 0.015 in each tail.

Part d — Interpret the confidence level. It describes the method, not this one interval: if the same study were repeated many times and an interval built the same way each time, 97% of those intervals would contain the true proportion.

Answer: c) i. the 97% confidence interval is \((0.0026, 0.0274)\); iii. \(EBP = 0.0124\). We estimate with 97% confidence that between 0.26% and 2.74% of all people over 50 who run died in the same eight-year period.

Problem 40. A telephone poll of 1,000 adult Americans was reported in an issue of Time Magazine. One of the questions asked was "What is the main problem facing the country?" Twenty percent answered "crime." We are interested in the population proportion of adult Americans who feel that crime is the main problem.

a) Define the random variables \(X\) and \(P'\) in words.

b) Which distribution should you use for this problem? Explain your choice.

c) Construct a 95% confidence interval for the population proportion of adult Americans who feel that crime is the main problem. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

d) Suppose we want to lower the sampling error. What is one way to accomplish that?

e) The sampling error given by Yankelovich Partners, Inc. (which conducted the poll) is \(\pm 3\%\). In one to three complete sentences, explain what the \(\pm 3\%\) represents.

Problem 40 Solution

Part a — Define the variables. \(X\) is the number of adult Americans in the sample who feel that crime is the main problem facing the country. \(P'\) is the proportion of the sampled adult Americans who feel that crime is the main problem.

Part b — Pick the distribution. We are estimating a proportion, with \(p' = 0.20\) and \(n = 1{,}000\). Since \(np' = 200 > 5\) and \(nq' = 800 > 5\),

$$ P' \sim N\!\left(0.2,\ \sqrt{\frac{(0.2)(0.8)}{1{,}000}}\right) = N(0.2,\ 0.012649) $$

Part c — Build the interval. \(CL = 0.95\) gives \(z_{0.025} = 1.96\).

$$ EBP = (1.96)(0.012649) = 0.0248 $$ $$ (0.2 - 0.0248,\ 0.2 + 0.0248) = (0.175,\ 0.225) $$

Rounded to two decimals, \((0.18, 0.22)\). Sketch a normal curve centred at 0.2 with that region shaded.

Part d — Lower the sampling error. Increase the sample size; \(n\) is under a square root in the denominator of the error bound.

Part e — What \(\pm 3\%\) represents. It is the maximum error bound the pollsters are reporting. They are saying their estimate of the percentage of adult Americans who feel crime is the main problem is off by no more than 3 percentage points, so the true percentage is estimated to be between 17% and 23%.

Answer: c) i. the 95% confidence interval is \((0.18, 0.22)\); iii. \(EBP \approx 0.02\); d) increase the sample size.

Problem 41. Refer to Problem 7.3.40. Another question in the poll was "How much are you worried about the quality of education in our schools?" Sixty-three percent responded "a lot". We are interested in the population proportion of adult Americans who are worried a lot about the quality of education in our schools.

a) Define the random variables \(X\) and \(P'\) in words.

b) Which distribution should you use for this problem? Explain your choice.

c) Construct a 95% confidence interval for the population proportion of adult Americans who are worried a lot about the quality of education in our schools. i. State the confidence interval. ii. Sketch the graph. iii. Calculate the error bound.

d) The sampling error given by Yankelovich Partners, Inc. (which conducted the poll) is \(\pm 3\%\). In one to three complete sentences, explain what the \(\pm 3\%\) represents.

Problem 41 Solution

Part a — Define the variables. \(X\) is the number of adult Americans in the sample who are worried a lot about the quality of education in our schools. \(P'\) is the proportion of the sampled adult Americans who are worried a lot about it.

Part b — Pick the distribution. A proportion again, with \(p' = 0.63\) and \(n = 1{,}000\). Since \(np' = 630 > 5\) and \(nq' = 370 > 5\),

$$ P' \sim N\!\left(0.63,\ \sqrt{\frac{(0.63)(0.37)}{1{,}000}}\right) = N(0.63,\ 0.015268) $$

Part c — Build the interval. \(CL = 0.95\) gives \(z_{0.025} = 1.96\).

$$ EBP = (1.96)(0.015268) = 0.0299 $$ $$ (0.63 - 0.03,\ 0.63 + 0.03) = (0.60,\ 0.66) $$

Sketch a normal curve centred at 0.63, shaded between 0.60 and 0.66.

Part d — What \(\pm 3\%\) represents. It is the maximum error bound the pollsters report: their estimate is claimed to be within 3 percentage points of the true percentage, so between 60% and 66% of adult Americans are worried a lot about school quality.

Answer: c) i. the 95% confidence interval is \((0.60, 0.66)\); iii. \(EBP \approx 0.03\).

Use the following information to answer the next three exercises: According to a Field Poll, 79% of Georgia adults (actual results are 400 out of 506 surveyed) feel that "education and our schools" is one of the top issues facing the state. We wish to construct a 90% confidence interval for the true proportion of Georgia adults who feel that education and the schools is one of the top issues facing Georgia.

Problem 42. A point estimate for the true population proportion is:

a) 0.90

b) 1.27

c) 0.79

d) 400

Problem 42 Solution

Step 1 — Recall what a point estimate is. The point estimate for a population proportion is the sample proportion \(p' = \frac{x}{n}\).

Step 2 — Compute it.

$$ p' = \frac{400}{506} = 0.79 $$

Step 3 — Rule out the others. 0.90 is the confidence level, 1.27 is not a proportion at all, and 400 is the count \(x\), not the proportion.

Answer: c. 0.79.

Problem 43. A 90% confidence interval for the population proportion is ____.

a) (0.761, 0.820)

b) (0.125, 0.188)

c) (0.755, 0.826)

d) (0.130, 0.183)

Problem 43 Solution

Step 1 — Collect the pieces. \(p' = \frac{400}{506} = 0.7905\), \(q' = 0.2095\), \(n = 506\), and \(CL = 0.90\) gives \(z_{0.05} = 1.645\).

Step 2 — Compute the error bound.

$$ EBP = (1.645)\sqrt{\frac{(0.7905)(0.2095)}{506}} = (1.645)(0.018091) = 0.0298 $$

Step 3 — Build the interval.

$$ (0.7905 - 0.0298,\ 0.7905 + 0.0298) = (0.761,\ 0.820) $$

Answer: a. (0.761, 0.820).

Problem 44. The error bound is approximately ____.

a) 1.581

b) 0.791

c) 0.059

d) 0.030

Problem 44 Solution

Step 1 — Take the error bound from Problem 7.3.43.

$$ EBP = (1.645)\sqrt{\frac{(0.7905)(0.2095)}{506}} = 0.0298 $$

Step 2 — Match it to the choices. That rounds to 0.030.

Answer: d. 0.030.

Use the following information to answer the next two exercises: Five hundred and eleven (511) homes in a certain southern California community are randomly surveyed to determine if they meet minimal earthquake preparedness recommendations. One hundred seventy-three (173) of the homes surveyed met the minimum recommendations for earthquake preparedness, and 338 did not.

Problem 45. Find the confidence interval at the 90% confidence level for the true population proportion of southern California community homes meeting at least the minimum recommendations for earthquake preparedness.

a) (0.2975, 0.3796)

b) (0.6270, 0.6959)

c) (0.3041, 0.3730)

d) (0.6204, 0.7025)

Problem 45 Solution

Step 1 — Find \(p'\) and \(q'\). 173 of 511 homes met the minimum recommendations.

$$ p' = \frac{173}{511} = 0.3386 \qquad q' = 0.6614 $$

Step 2 — Find the critical value. \(CL = 0.90\) gives \(z_{0.05} = 1.645\).

Step 3 — Compute the error bound.

$$ EBP = (1.645)\sqrt{\frac{(0.3386)(0.6614)}{511}} = (1.645)(0.020934) = 0.0344 $$

Step 4 — Build the interval.

$$ (0.3386 - 0.0344,\ 0.3386 + 0.0344) = (0.3041,\ 0.3730) $$

Answer: c. (0.3041, 0.3730).

Problem 46. The point estimate for the population proportion of homes that do not meet the minimum recommendations for earthquake preparedness is ____.

a) 0.6614

b) 0.3386

c) 173

d) 338

Problem 46 Solution

Step 1 — Read the question carefully. It asks about the homes that did NOT meet the recommendations, which is 338 of them, not 173.

Step 2 — Divide.

$$ p' = \frac{338}{511} = 0.6614 $$

Step 3 — Rule out the others. 0.3386 is the proportion that DID meet the recommendations, and 173 and 338 are counts, not proportions.

Answer: a. 0.6614.

Problem 47. In a specific year, Gallup reported that of the 1,005 people surveyed, 76% of U.S. workers believe that they will continue working past retirement age. The confidence level for this study was reported at 95% with a \(\pm 3\%\) margin of error.

a) Determine the estimated proportion from the sample.

b) Determine the sample size.

c) Identify CL and \(\alpha\).

d) Calculate the error bound based on the information provided.

e) Compare the error bound in part d to the margin of error reported by Gallup. Explain any differences between the values.

f) Create a confidence interval for the results of this study.

g) Danielle Okonkwo is covering the release of this study for a local news station. How should she explain the confidence interval to her audience?

Problem 47 Solution

Part a — The estimated proportion. Gallup reported that 76% of those surveyed believe they will keep working past retirement age, so \(p' = 0.76\).

Part b — The sample size. \(n = 1{,}005\).

Part c — Identify CL and \(\alpha\). The confidence level is \(CL = 0.95\), so \(\alpha = 1 - 0.95 = 0.05\) and \(\frac{\alpha}{2} = 0.025\), giving \(z_{0.025} = 1.96\).

Part d — Calculate the error bound.

$$ EBP = (1.96)\sqrt{\frac{(0.76)(0.24)}{1{,}005}} = (1.96)(0.013472) = 0.0264 $$

Part e — Compare to Gallup's \(\pm 3\%\). Our calculation gives about 2.6%, slightly less than the 3% Gallup reported. Gallup likely rounded up to a conservative whole number, and polling organizations often quote a margin of error computed at the worst case \(p' = 0.5\) — which here would give \((1.96)\sqrt{\frac{0.25}{1{,}005}} = 0.0309\), about 3%. Reported margins also sometimes include an allowance for design effects that our formula ignores.

Part f — Create the interval.

$$ (0.76 - 0.0264,\ 0.76 + 0.0264) = (0.734,\ 0.786) $$

Part g — Explaining it on the news. She should avoid the phrase "95% chance". A workable version: "About three-quarters of workers told Gallup they expect to keep working past retirement age. Because this is a survey of about a thousand people rather than everyone, the real figure for all U.S. workers is probably between 73% and 79%. If Gallup ran this same poll over and over, 95% of the ranges they reported this way would contain the true figure."

Answer: a) 0.76; b) 1,005; c) \(CL = 0.95\), \(\alpha = 0.05\); d) \(EBP = 0.0264\); f) \((0.734, 0.786)\).

Problem 48. A national survey of 1,000 adults was conducted by Rasmussen Reports. It concluded with 95% confidence that 49% to 55% of Americans believe that big-time college sports programs corrupt the process of higher education.

a) Find the point estimate and the error bound for this confidence interval.

b) Can we (with 95% confidence) conclude that more than half of all American adults believe this?

c) Use the point estimate from part a and \(n = 1{,}000\) to calculate a 75% confidence interval for the proportion of American adults that believe that major college sports programs corrupt higher education.

d) Can we (with 75% confidence) conclude that at least half of all American adults believe this?

Problem 48 Solution

Part a — Recover the point estimate and error bound. The interval runs from 0.49 to 0.55. The point estimate is the midpoint, and the error bound is the distance from the midpoint to either endpoint.

$$ p' = \frac{0.55 + 0.49}{2} = 0.52 \qquad EBP = 0.55 - 0.52 = 0.03 $$

Part b — Can we conclude more than half? The interval \((0.49, 0.55)\) contains values at and below 0.50, so a true proportion of one half or less is still plausible.

Part c — Build a 75% interval. \(CL = 0.75\), so \(\alpha = 0.25\) and \(\frac{\alpha}{2} = 0.125\), giving \(z_{0.125} = 1.150\) (the area to the left of it is \(1 - 0.125 = 0.875\)).

$$ EBP = (1.150)\sqrt{\frac{(0.52)(0.48)}{1{,}000}} = (1.150)(0.0157988) = 0.018 $$ $$ (0.52 - 0.018,\ 0.52 + 0.018) = (0.502,\ 0.538) $$

Part d — Can we conclude at least half at 75%? This interval's lower endpoint, 0.502, sits above 0.50, so every plausible value in it is more than half.

Answer: a) \(p' = 0.52\), \(EBP = 0.03\); b) no — the 95% interval includes values at or below 0.50, so it is possible that less than half of the population believes this; c) \((0.502, 0.538)\); d) yes — this interval does not reach below 0.50, so at 75% confidence we can conclude at least half of all American adults believe this. Note that the weaker claim comes with weaker confidence: narrowing the interval by dropping to 75% is what made the conclusion possible.

Problem 49. Public Policy Polling recently conducted a survey asking adults across the U.S. about music preferences. When asked, 80 of the 571 participants admitted that they have illegally downloaded music.

a) Create a 99% confidence interval for the true proportion of American adults who have illegally downloaded music.

b) This survey was conducted through automated telephone interviews. The error bound of the survey compensates for sampling error, or natural variability among samples. List some factors that could affect the survey's outcome that are not covered by the margin of error.

c) Without performing any calculations, describe how the confidence interval would change if the confidence level changed from 99% to 90%.

Problem 49 Solution

Part a — Build the 99% interval. With \(x = 80\) and \(n = 571\),

$$ p' = \frac{80}{571} = 0.1401 \qquad q' = 0.8599 $$

Check the condition: \(np' = 80 > 5\) and \(nq' = 491 > 5\). For \(CL = 0.99\), \(\alpha = 0.01\), \(\frac{\alpha}{2} = 0.005\), and \(z_{0.005} = 2.576\).

$$ EBP = (2.576)\sqrt{\frac{(0.1401)(0.8599)}{571}} = (2.576)(0.014524) = 0.0374 $$ $$ (0.1401 - 0.0374,\ 0.1401 + 0.0374) = (0.103,\ 0.177) $$

Part b — What the margin of error does not cover. The error bound only accounts for the randomness of which people ended up in the sample. It says nothing about people who never pick up an automated call, or who have no landline; about respondents who under-report an admission of illegal activity to an automated voice; about how the question was worded; or about who hangs up partway through.

Part c — Dropping to 90%. Lowering the confidence level shrinks the critical value from 2.576 to 1.645, so the interval gets narrower and stays centred on 0.1401.

Answer: a) the 99% confidence interval is \((0.103, 0.177)\); b) non-response, coverage of the automated calling frame, and under-reporting of an illegal behaviour are all uncovered by the margin of error; c) the interval would become narrower.

Problem 50. You plan to conduct a survey on your college campus to learn about the political awareness of students. You want to estimate the true proportion of college students on your campus who voted in the 2020 presidential election with 95% confidence and a margin of error no greater than five percent. How many students must you interview?

Problem 50 Solution

Step 1 — Read off the target. The margin of error is \(EBP = 0.05\), and 95% confidence gives \(\alpha = 0.05\), \(\frac{\alpha}{2} = 0.025\), and \(z_{0.025} = 1.96\).

Step 2 — Use the worst-case proportion. You have no prior estimate of the turnout proportion on your campus, so take \(p' = q' = 0.5\) and \(p'q' = 0.25\).

Step 3 — Substitute.

$$ n = \frac{(1.96)^{2}(0.25)}{(0.05)^{2}} = \frac{0.9604}{0.0025} = 384.16 $$

Step 4 — Round up.

Answer: you must interview 385 students.

Problem 51. In a recent Zogby International Poll, nine of 48 respondents rated the likelihood of a terrorist attack in their community as "likely" or "very likely." Use the plus four method to create a 97% confidence interval for the proportion of American adults who believe that a terrorist attack in their community is likely or very likely. Explain what this confidence interval means in the context of the problem.

Problem 51 Solution

Step 1 — Apply the plus four adjustment. With \(x = 9\) and \(n = 48\), use \(x = 9 + 2 = 11\) and \(n = 48 + 4 = 52\). The sample is small and the confidence level is above 90%, which is exactly when this method is recommended.

Step 2 — Find \(p'\) and \(q'\).

$$ p' = \frac{11}{52} = 0.2115 \qquad q' = 0.7885 $$

Step 3 — Find the critical value. \(CL = 0.97\), so \(\alpha = 0.03\), \(\frac{\alpha}{2} = 0.015\), and \(z_{0.015} = 2.17\).

Step 4 — Compute the error bound.

$$ EBP = (2.17)\sqrt{\frac{(0.2115)(0.7885)}{52}} = (2.17)(0.056635) = 0.1229 $$

Step 5 — Build the interval.

$$ (0.2115 - 0.1229,\ 0.2115 + 0.1229) = (0.089,\ 0.334) $$

Answer: the 97% plus four confidence interval is \((0.089, 0.334)\). We are 97% confident that between 8.9% and 33.4% of all American adults believe a terrorist attack in their community is likely or very likely. The interval is very wide because only 48 people were polled — with a sample this small, the poll narrows the answer down to somewhere between "fewer than one in ten" and "a third", which is not a precise finding.

Key Terms

sample proportion \(p'\) — the number of successes divided by the sample size, \(x/n\); the point estimate for the population proportion \(p\).

error bound for a proportion (EBP) — the distance \(\left(z_{\frac{\alpha}{2}}\right)\sqrt{\frac{p'q'}{n}}\) added to and subtracted from \(p'\) to form the confidence interval.

plus four method — an adjustment that adds two successes and two failures to the sample before computing the interval, giving better accuracy for small samples at confidence levels of 90% or more.