Page 222 - Statistics for Dummies
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                                         Part IV: Guesstimating and Hypothesizing with Confidence

                                                    If you are wondering where this formula for sample size came from, it’s actu-
                                                    ally created with just a little math gymnastics. Take the margin of error for-
                                                    mula (which contains n), fill in the remaining variables in the formula with
                                                    numbers you glean from the problem, set it equal to the desired MOE, and
                                                    solve for n.
                                         Determining the Confidence Interval
                                         for One Population Proportion
                                                    When a characteristic being measured is categorical — for example, opinion
                                                    on an issue (support, oppose, or are neutral), gender, political party, or type
                                                    of behavior (do/don’t wear a seatbelt while driving) — most people want to
                                                    estimate the proportion (or percentage) of people in the population that fall
                                                    into a certain category of interest. For example, consider the percentage of
                                                    people in favor of a four-day work week, the percentage of Republicans who
                                                    voted in the last election, or the proportion of drivers who don’t wear seat
                                                    belts. In each of these cases, the object is to estimate a population propor-
                                                    tion, p, using a sample proportion,  , plus or minus a margin of error. The
                                                    result is called a confidence interval for the population proportion, p.

                                                    The formula for a CI for a population proportion is      , where   is
                                                    the sample proportion, n is the sample size, and z* is the appropriate value
                                                    from the standard normal distribution for your desired confidence level.
                                                    Refer to Table 13-1 for values of z* for certain confidence levels.

                                                    To calculate a CI for the population proportion:

                                                     1. Determine the confidence level and find the appropriate z*-value.
                                                        Refer to Table 13-1 for z*-values.
                                                     2. Find the sample proportion,  , by dividing the number of people in
                                                        the sample having the characteristic of interest by the sample size (n).
                                                        Note: This result should be a decimal value between 0 and 1.

                                                      3. Multiply       and then divide that amount by n.
                                                      4. Take the square root of the result from Step 3.
                                                      5. Multiply your answer by z*.
                                                         This step gives you the margin of error.
                                                      6. Take  plus or minus the margin of error to obtain the CI; the lower
                                                        end of the CI is   minus the margin of error, and the upper end of the
                                                        CI is   plus the margin of error.









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