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Confidence Interval & Sample Size Mechanical Engineering graduates is 0.0857 or 8.57%.
The standard deviation is 0.015.
Definition:
n = number of observations in a simple random sample Tell if the sample used in proportion case is
or sample size small or large.
^p = sample proportion (read as “p hat”) 1. ^p=0.71 , σ p =0.099
Number of desired outcomes ^p ± 3 σ p = ( ^p−3 σ p , ^
p +3 σ p )
=
Number of sample elements = (0.71 – 3(0.099), 0.71 + 3(0.099))
p = population proportion = (0.413, 1.007)
q^ = 1 - ^p = estimates proportion not ^p
Since the interval (0.413, 1.007) includes 1,
EXAMPLE 1: therefore the proportion comes from a small sample
size.
In a job satisfaction survey in a certain mall, 700
employees were asked if they were satisfied with their 2. ^p=0.26 , σ p =0.064
jobs. There were 518 responded with a YES. What ^p ± 3 σ p = ( ^p−3 σ p , ^p +3 σ p )
proportion is this? What proportion responded with a
= (0.26 – 3(0.064), 0.26 + 3(0.064))
NO?
= (0.068, 0.452)
x= 518 n = 700
1.
^p .
2 √
^p−z α p q < p < ^p + z α
^^
n 2 √ ^p q^
n
=
√
^p ± z α p q
2
^^
n
distribution of
√
^p is σ p = pq .
n
The standard error of the estimate is
^p q^
n
.
√
4. For large samples, the sampling distribution of
^p is approximately normal. A sample size is
considered large if the interval ^p ± 3 σ p does
The margin of error E of the estimate is z α
2
^p q^
n
.
√
not include 0 (like p = 0.001) or 1 (like p = 0.99). EXAMPLE 4:
Thus, the point estimate of the population proportion A survey of 1200 citizens showed that 715 trust
is 74%. This means that if we were to draw random the President. Compute a 95% confidence interval for
samples of 700 people over and over again, each time the proportion of all citizens who trust the president.
calculating a ^p , like the sampling distribution of
means, the mean proportion would be 74%.
X = 715 n = 1200
zα = 1.960
2
EXAMPLE 2:
X 715
What is the point estimate and the standard ^p= = =0.5958∨59.58
deviation of the proportion of 30 BS Mechanical n 1200
Engineering (ME) graduates from the batch with 350 q^ =1− ^p =1−0.5958=0.4042∨40.42
graduates?
X = 30 n = 350
X 30
^p= =
n 350
=0.0857∨8.57 ( √ √ )
^p−z α
2
^p q^
n
, ^p + z α
2
^p q^
n
=
q^ =1− ^p =1−0.0857=0.9143∨91.43
σ p=
√ √
pq
n
=
(0.0857)(0.9143)
350
≈ 0.015
( √
0.5958−1.960
= (0.5680, 0.6236)
( 0.5958 ) ( 0.4042 )
1200
, 0.5958+1.960
(0.595
√
1
With 95% confidence, the interval from 56.80% within an error of 0.025 of its true value. Using 99%
to 62.36% contains the true percentage of all citizens confidence level, find the sample size n that he
who trust the President. needs.
If the confidence interval is given, then the length of an According to the Range Rule of Thumb, the Range, R, is
interval can be determined using about 4 times the Standard Deviation, σ , therefore
R=4 σ
Length=U−L=Upper Limit−Lower Limit .
R U −L 12.8−12.4 0.4
If the confidence interval is not given, then the length of σ = = = = =0.1
an interval can be determined by 4 4 4 4
2
σ z α ⋅σ
Length = 2 z α
2
( )
√n Solve for n=
2
( )
2
E
EXAMPLE 5: z α ⋅σ
A marketing officer is 99% confident that their usual
female customers have a mean height of 166 cm to 174
n= ( )[ 2
E
=
(2.576)( 0.1)
0.025
2
]
=106.172416 ≈ 107
U = 174 cm L = 166 cm
The confidence interval has a length of 8 cm. In computing the sample size for estimating a population
proportion, there are two situations to bear in mind:
EXAMPLE 6:
1. If some approximation of ^p is known, that value
A researcher wants to estimate the number of hours that may be used in the formula.
5-year old children spend watching television. A sample
of 50 five-year old children was observed to have a 2. If no approximation is known, use ^p = 0.5. This
mean viewing time of 3 hours. The population is value will result in a sample size large enough to
normally distributed with a population standard deviation guarantee prediction, given the confidence interval and
of 0.5 hours at 95% confidence interval of the population the error of estimate. The reason is that when ^p
mean, how long is the confidence interval?
and q ^ are 0.5 each, this will give the maximum
Confidence Interval is not given, therefore we use: product of proportions.
σ
Length = 2zα
2
( )
√n
EXAMPLE 8:
q^ = 1 – 0.42 = 0.58
zα 2
()
From the formula of margin of error 2
1.960
( )
2
z α ⋅σ
For population: n= ( )2
E
2
n= ^p q^ 2 =( 0.42 ) ( 0.58 )
E
¿ 2,339.5344 ≈ 2340
0.02
zα
For population proportion: n= ^p q^ ()
E
2
PROBLEM SET: