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p (1 − p ) pq pˆ qˆ
σ pˆ = = ≈
n n n
Where q = 1 – p
= Ps = Sample proportion
The equation, then, for a large sample confidence interval for p is as follows:
pq pˆ qˆ
pˆ ± zα ≈ pˆ ± zα
2 n 2 n
The central limit theorem also applies to sample proportions in that the
normal distribution approximates the shape of the distribution of sample
proportion if (n x p) > 5 and [n (1 - p)] > 5, where p is the population
proportion.
The mean of sample proportion for all samples of size n randomly drawn
from a population is p (the population proportion) and the standard deviation
of the sampling distribution of sample proportions (or the standard error of
the proportion) is the square root of (p . q)/n, where q = 1 - p. The Z
equation for the sample proportion is as follows:
• :
Approximated by a normal distribution if
. .
• np ≥ 5
• n (1− p) ≥ 5
Where
And
(Where p = population proportion)
Example:
Example 2:
And z is
Almost all the area under the curve lies to the right of this Z value. The
probability of getting this sample proportion or a smaller one is virtually zero.
That is, the results obtained from this sample are almost too different from the
43% proportion for Salman to accept the national figure for region of Karachi.
The following graph shows this problem.
Example
1000 randomly selected peoples were asked if they believed the minimum
wage should be raised. 600 said yes. Construct a 95% confidence interval
for the proportion of peoples who believe that the minimum wage should be
raised.
Solution:
= 600/1000 = 0.6
== 1.96
and n = 1000
q = 1- p = 1 - 0.6 = 0.4
pq pˆ qˆ
pˆ ± zα ≈ pˆ ± zα
2 n 2 n
Hence we can conclude that between 57 and 63 percent of all peoples agree
with the proposal. In other words, with a margin of error of .03 , 60% agree.
We know that
= so
Solving for n
Fro the sample size equation, we can see that as the value of p*q gets bigger,
so does the value of n. Therefore, what values will make n the biggest if
everything else in the equation is fixed?
ˆ = qˆ = 0.5
p
Example
You have been hired by the Clear Optical company4 to design a study to
estimate the proportion of the Peshawar population who wear corrective
lenses. The desired margin of error is 1% (at the 95% confidence level).
What is the minimum sample size you should use? (Assume we don't know
^p yet.)
Solution
= = 0. 05
= 0.025
Z0.025 = 1.96
= 0. 5
= 1 – 0.5 = 0.5