Confidence Intervals for Proportions Chapter 19 Rate your confidence 0 - 100 • Name my age within 10 years? • within 5 years? • within 1 year? • Shooting a basketball at a wading pool, will make basket? • Shooting the ball at a large trash can, will make basket? • Shooting the ball at a carnival, will make basket? What happens to your confidence as the interval gets smaller? The larger your confidence, the wider the interval. Confidence intervals • Are used to estimate the unknown population proportion • Formula: estimate + margin of error Confidence Interval Conditions: Plausible Independence Condition: Is there any reason to believe that the data values somehow affect each other? Randomization Condition: Was the data sampled at random? 10% Condition: Was the sample less than 10% of the population? Success/Failure Condition: Do both np and nq ≥ 10? If these conditions are satisfied, then I can use a Normal model to find a one-proportion z-interval. Margin of error • Shows how accurate we believe our estimate is • The smaller the margin of error, the more precise our estimate of the true parameter • Formula: critical m value standard deviation of the statistic Confidence level • Is the success rate of the method used to construct the interval • Using this method, ____% of the time the intervals constructed will contain the true population parameter What does it mean to be 95% confident? • 95% chance that p is contained in the confidence interval • The probability that the interval contains p is 95% • The method used to construct the interval will produce intervals that contain p 95% of the time. Critical value (z*) • Found from the confidence level • The upper z-score with probability p lying to its right under the standard normal curve Confidence level 90% 95% 99% z*=1.645 tail area z*=1.96 z*=2.576z* .05 .025 .005 1.645 .05 .025 1.96 .005 2.576 Formula for Confidence interval: CI statistic critical value SD of statistic p̂ z * p 1 p n Note: For confidence intervals, we DO NOT know p – so we MUST substitute p-hat for p in both the SD & when checking assumptions. Steps for doing a confidence interval: 1) State the parameter 2) Assumptions – 1)SRS from population 2) Success/Failure Condition (Large enough sample) np 10 and n(1-p) 10 3 10% rule – the sample is less then 10% of the population 3) Calculate the interval 4) Write a statement about the interval in the context of the problem. Statement: (memorize!!) We are ________% confident that the true proportion context lies within the interval ______ and ______. A May 2000 Gallup Poll found that 38% of a random sample of 1012 adults said that they believe in ghosts. Find a 95% confidence interval for the true proportion of adults who believe in ghosts. State the parameter p = the true proportion of adults who believe in ghosts Justify the confidence interval needed (state assumptions) 1) The sample must be random which is stated in the problem. 2) The sample should be large. Since np =1012(.38) = 384.56 > 10 and n(1-p) = 1012(.62) = 627.44 > 10, the sample is large enough. 3) The sample should be less than 10% of the population. The population should be at least 10,120 adults which we will assume. Since the conditions are satisfied a CI for proportions is appropriate. Calculate the confidence interval. pˆ .38 n 1012 95% CI pˆ z * .38(.62) p 1 p .38 1.96 .35,.41 n 1012 Explain the interval in the context of the problem. We are 95% confident that the true proportion of adults who believe in ghosts is between 35% and 41%. If we wanted a 99% confidence interval for the previous problem, what would change? pˆ .38 n 1012 99% CI pˆ z * .38(.62) p 1 p .38 2.576 .34,.42 n 1012 The interval is larger. Only the margin of error changed. Another Gallop Poll is taken To findtosample size: the in order measure proportion of adults pwho 1 p m z * approve of attempts to clone n humans. What size is a However, since sample we have not yet taken sample, we know a + p-hat (or p) necessary todobenotwithin 0.04 oftothe use! true proportion of adults who approve of attempts to clone humans with a 95% Confidence Interval? What p-hat (p) do you use when trying to find the sample size for a given margin of error? .1(.9) = .09 .2(.8) = .16 .3(.7) = .21 .4(.6) = .24 .5(.5) = .25 By using .5 for p-hat, we are using the worstcase scenario and using the largest SD in our calculations. Another Gallop Poll is taken in order to measure the proportion of adults who approve of attempts to clone humans. What sample size is necessary to be within + 0.04 of the true proportion of adults who approve of attempts to clone humans with a 95% Confidence p 1 p Interval? m z * .04 1.96 n .5.5 n .5.5 n .04 1.96 2 .25 .04 n 1.96 n 600 .25 601 Use p-hat = .5 Divide by 1.96 Square both sides Round up on sample size