Confidence interval for Population Proportion is given as below:
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Where, P is the sample proportion, Z is critical value, and n is sample size.
We are given
n = 1000
x = 1000 – 40 = 960
P = x/n = 960/1000 = 0.96
Confidence level = 95%
Critical Z value = 1.96
(by using z-table)
Confidence Interval = P ± Z* sqrt(P*(1 – P)/n)
Confidence Interval = 0.96 ± 1.96* sqrt(0.96*(1 – 0.96)/1000)
Confidence Interval = 0.96 ± 1.96* 0.0062
Confidence Interval = 0.96 ± 0.0121
Lower limit = 0.96 - 0.0121= 0.948
Upper limit = 0.96 + 0.0121= 0.972
0.948 < p < 0.972
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