Here’s the formula for a CI for p: pz * p(1 p) n p-hat is our unbiased Estimate of p. Z* is called the critical value. I’ll teach you how to calculate that next. This is the standard deviation of p-hat. Notice all the hats – we don’t really ever know p, so we use p-hat to estimate it. You will be told the confidence level (i.e. 90%). Draw a normal curve. Label the confidence level in the MIDDLE. Notice there is a portion in each tail that is unshaded. The value of one of those tails is found by subtracting from 1 and then dividing by 2. Look that value up in the BODY of Table A. Make it positive. i.e. 90% confidence 1 - .90 = 0.10. Divide by 2 0.05. Look up in Table A. Z* is 1.64 or 1.65. Find z* for 94% confidence. Here are some common z* that you might want to memorize: 90% confidence z* = 1.645 95% confidence z* = 1.96 99% confidence z* = 2.575 Let’s look back at our formula. pz p (1 p) n The margin of error gets smaller when: * The sample size increases The confidence level decreases This is true for all CIs. Every inference procedure will have three conditions to check. Today, we are studying constructing a CI for p. SRS Normality Do you remember the normality check for proportions? n p 10 and n(1 p ) 10 Independence This is called the 10% rule in your book. Population ≥ 10n State: What parameter do you want to estimate, and at what confidence level? Plan: Identify the appropriate inference method. Check conditions. Do: If the conditions are met, perform calculations. Conclude: Interpret your interval in the context of the problem. One-Sample z Interval for a Population Proportion Calculate and interpret a 90% confidence interval for the proportion of red beads in a container. Your teacher claims 50% of the beads are red. You take a sample of 251 and 107 are red. Use your interval to comment on this claim. sample proportion = 107/251 = 0.426 Conditions? For a 90% confidence level, z* = 1.645 statistic ± (critical value) • (standard deviation of the statistic) We are 90% confident that the pˆ (1 pˆ ) pˆ z * interval from 0.375 to 0.477 n captures the actual proportion of (0.426)(1 0.426) red beads in the container. 0.426 1.645 251 Since this interval gives a range 0.426 0.051 of plausible values for p and since (0.375, 0.477) 0.5 is not contained in the interval, we have reason to doubt the claim. The margin of error in a confidence interval only accounts for sampling variability. Other sources of bias can still make our results inaccurate. Examples: Response bias (did some teens answer the question untruthfully?) Nonresponse Wording STAT, TESTS, A:”1-PropZInt” X = Number of successes in the sample N = Sample Size C-Level = Confidence Level The Gallup Youth Survey asked a SRS of 439 US teens aged 13 to 17 whether they thought young people should wait to have sex until marriage. Of the sample, 246 said “yes.” Construct and interpret a 95% confidence interval for the proportion of all US teens who would say “yes” if asked this question. Choosing the Sample Size In planning a study, we may want to choose a sample size that allows us to estimate a population proportion within a given margin of error. The margin of error (ME) in the confidence interval for p is pˆ (1 pˆ ) ME z * n z* is the standard Normal critical value for the level of confidence we want. Because the margin of error involves the sample proportion pˆ , we have to guess the latter value when choosing n. There are two ways to do this : • Use a guess for pˆ based on past experience or a pilot study • Use pˆ 0.5 as the guess. ME is largest when pˆ 0.5 Sample Size for Desired Margin of Error To determine the sample size n that will yield a level C confidence interval for a population proportion p with a maximum margin of error ME, solve the following inequality for n: pˆ (1 pˆ ) z* ME n where pˆ is a guessed value for the sample proportion. The margin of error will always be less than or equal to ME if you take the guess pˆ to be 0.5. Example: Customer Satisfaction Read the example on page 493. Determine the sample size needed to estimate p within 0.03 with 95% confidence. The critical value for 95% confidence is z* = 1.96. Since the company president wants a margin of error of no more than 0.03, we need to solve the equation pˆ (1 pˆ ) 1.96 0.03 n Multiply both sides by square root n and divide both sides by 0.03. Square both sides. Substitute 0.5 for the sample proportion to find the largest ME possible. 1.96 pˆ (1 pˆ ) n 0.03 1.96 2 pˆ (1 pˆ ) n 0.03 1.96 2 (0.5)(1 0.5) n 0.03 1067.111 n We round up to 1068 respondents to ensure the margin of error is no more than 0.03 at 95% confidence.