Sampling Distribution Models Population Parameter: p Population – all items of interest. Random selection Sample – a few items from the population. Inference Sample Statistic: p̂ 1 Sampling Distribution of p̂ Shape: Approximately Normal Center: The mean is p. Spread: The standard deviation is p1 p n 2 Sampling Distribution of p̂ Conditions: 10% Condition: The size of the sample should be less than 10% of the size of the population. Success/Failure Condition: np and n(1 – p) should both be greater than 10. 3 68 – 95 – 99.7 Rule p3 pq n p2 pq n p pq n p p 1 pq n p2 pq n p3 pq n 4 Probability If the population proportion, p, is known, we can find the probability or chance that p̂ takes on certain values using a normal model. 5 Inference In practice the population parameter, p, is not known and we would like to use a sample to tell us something about p. Use the sample proportion, p̂ , to make inferences about the population proportion p. 6 Example Population: All adults in the U.S. Parameter: Proportion of all adults in the U.S. who think that abortion should be legal. Unknown! 7 Example Sample: 1,772 randomly selected registered voters nationwide. Quinnipiac University Poll, Jan. 30 – Feb. 4, 2013. Statistic: 992 of the 1,772 registered voters in the sample (56%) answered that abortion should be legal. 8 68-95-99.7 Rule 95% of the time the sample proportion, p̂ , will be between p(1 p) p(1 p) p2 and p 2 n n 9 68-95-99.7 Rule 95% of the time the sample proportion, p̂ , will be within p(1 p) 2 n two standard deviations of p. 10 Standard Deviation Because p, the population proportion is not known, the standard deviation SD( pˆ ) is also unknown. p(1 p) n 11 Standard Error Substitute p̂ as our estimate (best guess) of p. The standard error of p̂ is: SE( pˆ ) pˆ (1 pˆ ) n 12 About 95% of the time the sample proportion, p̂ , will be within pˆ (1 pˆ ) 2SE( pˆ ) 2 n two standard errors of p. 13 About 95% of the time the population proportion, p, will be within pˆ (1 pˆ ) 2SE( pˆ ) 2 n two standard errors of p̂ . 14 Confidence Interval for p We are 95% confident that p will fall between pˆ (1 pˆ ) pˆ (1 pˆ ) pˆ 2 and pˆ 2 n n 15 Example pˆ 0.56 pˆ (1 pˆ ) 0.560.44 0.012 n 1772 0.56 20.012 to 0.56 20.012 0.536 to 0.584 16 Interpretation We are 95% confident that the population proportion of all adults in the U.S. who would answer that abortion should be legal is between 53.6% and 58.4%. 17 Interpretation Plausible values for the population parameter p. 95% confidence in the process that produced this interval. 18 95% Confidence If one were to repeatedly sample at random 1,772 adults and compute a 95% confidence interval for each sample, 95% of the intervals produced would contain, or capture, the population proportion p. 19 Simulation http://statweb.calpoly.edu/chanc e/applets/Confsim/Confsim.html 20 21 Margin of Error pˆ (1 pˆ ) 2SE( pˆ ) 2 n Is called the Margin of Error (ME). This is the furthest p̂ can be from p, with 95% confidence. 22 Margin of Error What if we want to be 99.7% confident? pˆ (1 pˆ ) ME 3SE( pˆ ) 3 n 23 Margin of Error pˆ (1 pˆ ) ME z * SE( pˆ ) z * n Confidence z* 80% 90% 95% 98% 99% 1.282 1.645 2 or 1.96 2.326 2.576 24 Another Example Pew Research Center/USA Today Poll, Feb. 13 – 18, 2013. Asked of 1,504 randomly selected adults nationwide. “Do you favor or oppose setting stricter emission limits on power plants in order to address climate change?” 25 Another Example n=1,504 randomly selected adults. Favor Oppose 52% 28% Unsure/ Refused 10% 26 Another Example 90% confidence interval for p, the proportion of the population of all adults in the U.S. who favor emission limits on power plants in order to address climate change. 27 Calculation pˆ 1 pˆ pˆ 0.52 SE( pˆ ) 0.013 z* 1.645 n 0.52 1.6450.013 to 0.52 1.6450.013 0.52 0.021 to 0.52 0.021 0.499 to 0.541 28 What Sample Size? Conservative Formula The sample size to be 95% confident that p̂ , the sample proportion, will be within ME of the population proportion, p. 1 n 2 ME 29 Example Suppose we want to be 95% confident that our sample proportion will be within 0.02 of the population proportion. 1 1 n n 2 , 500 2 2 ME 0.02 30