00:01
With this example, we're going to look at a couple different settings where we've actually taken a sample of one group and found the number that have that characteristic in that first group.
00:12
And then we do it for a second group as well.
00:15
So here for our first group, our sample size is 1001.
00:18
And the number in the sample that have the characteristic we're focusing on is 921.
00:23
For a point estimate p hat, we find it by x over n.
00:29
So 921 divided by 10001, or we get our p hat value of 0 .92.
00:39
Now we want to see if the conditions are met that we can use the confidence interval techniques from this presentation of the material.
00:48
So is n times p hat times 1 minus p hat greater than or equal to 10? will calculate out the 1001 times a 0 .92 times the 1 minus 0 .92.
01:03
And when you do get that, you'll get a 73 .67, which definitely is greater than 10.
01:13
So that's yes.
01:15
Is the sample size less than equal to 5 % of the population size? well, if this is from adult americans, we want to know if 100 % is less than 1 ,000 is less or equal to 0 .05 is the decimal form for 5%.
01:31
And the number of adult americans at the most recent census is 257 ,536 ,000.
01:41
And so definitely 1001 is smaller than that number.
01:49
So that's also meant.
01:52
Now, what if they want us to then construct a 95 % confidence interval for this population proportion p.
02:13
We'll remember it's p hat minus e for a lower bound, and it's p hat plus e for an upper bound, where e is equal to z sub alpha over 2 times the square root of p hat times one minus p hat over n, and if it's a 90 % confidence level, your z sub alpha over 2 is the 1 .645.
02:48
If it's a 95 % confidence level, z sub alpha over 2 is 1 .960.
02:56
And if it's a 99 % confidence level, your z sub alpha over 2 is 2 .575.
03:04
So those are three different ones that it's always good to have reference or commit to memory because they're used quite frequently.
03:12
There is an earlier video that talks about how these critical values are found.
03:17
Also, it walks you through if you have a different percentage than these, like if you want it for an 85 % or anything like that.
03:25
But here, it's for 95 % confidence interval.
03:29
So we're going to use our z -sive alpha over 2 of the 1 .9.
03:34
960.
03:36
So we have our p hat, which we found in part a.
03:41
So that's the 0 .920 minus, and then our e calculation is a 1 .960 times the square root of our p hat of 0 .920 times 1 minus 0 .920 over our n.
04:04
And n is, and n is 1 ,001 and then that's our lower bound our upper bound is 0 .920 plus that 1 .960 times that square root of 0 .92 times 1 minus 0 .92 divided by the 1001 so calculating that out you get that our lower bound is 0 .903 and our upper bound upper bound is 0 .937.
04:42
Now what if it asks me, is it possible that the population proportion is less than 0 .85? well, 0 .85 is not in my confidence interval, but this is a 95 % confidence...