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Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.” -John W. Tukey

Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

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Page 1: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Chapter 19:Confidence Intervals for

Proportions

“Far better an approximate answer to the right question,…than an exact

answer to the wrong question.”

-John W. Tukey

Page 2: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Standard Error

To find the standard error:

Because the sampling distribution model is Normal: 68% of all samples will be within

95% of all samples will be within

99.5% of all samples will be within

pq

SE pn

1p SE

2p SE

3p SE

Page 3: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Confidence Interval

“One-proportion z-interval” Putting a number

on the probability that this interval covers the true proportion.

Our best guess of where the parameter is and how certain we are that it’s within some range.

Page 4: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Margin of Error

The extent of the interval on either side of

is called the margin of error (ME).

In general, confidence intervals are written as:

There is a conflict between certainty and

precision Choose a confidence level – the data does not

determine the confidence level

p

estimate ME

Page 5: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Assumptions and Conditions

Independence Assumption:The data values are assumed to be independent from each other. Plausible independence condition:

Do the data values somehow affect each other? Dependent on knowledge of the situation

Randomization condition: Where data sampled at random or generated from a properly

randomized experiment? Proper randomization helps ensure independence

10% condition: Samples are always drawn without replacement Samples size should be less than 10% of the population

Page 6: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Assumptions and Conditions

Sample Size Assumption:

-Based upon the Central Limit Theory (CLT) The sample must be large enough to make the

sampling model for the sampling proportions approximately Normal.

More data is needed as the proportion gets closer to either extreme, 0 or 1.

Success/failure condition: expect at least 10 successes and 10 failures.

Page 7: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

One-proportion z-interval

When the conditions are met, we are ready to find the confidence interval for the population proportion, p. Since the standard error of the proportion is estimated by

.

* *

, the confidence interval is

. The critical value, , depends

on the particular confidence level, C, that you specify

pqSE p

n

p z SE p z

Page 8: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

TI-83+ Tips

TI-83+ can calculate a confidence interval for a population proportion.

STAT TESTS A: 1-PROPZInt

Page 9: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

TI-83+ Tips

Enter the number of successes observed and the sample size.

Specify a confidence level and then Calculate.

Page 10: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Caution! Caution! Caution!

Don’t mistake what the interval means: Do not suggest that the parameter varies.

The population parameter is fixed; the interval varies from sample to sample.

Do not claim that other samples will agree with this sample.

The interval isn’t about sample proportions; it is about the population proportion.

Don’t be certain about the parameter. We can’t be absolutely certain that the population

proportion isn’t outside the interval – just pretty sure.

Page 11: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Caution! Caution! Caution!

Don’t forget: it’s a parameter. The confidence interval is about the unknown

population parameter, p. Don’t claim too much.

Write your confidence statement about your sample. Take responsibility.

Confidence intervals are about uncertainty. You are uncertain, however, not the parameter.

Page 12: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Margin of Error: Too Large to be Useful?

Think about the margin of error during design of the study.

Choose a larger sample to reduce variability in the sample proportion.

To cut the standard error (and the ME) in half, quadruple the sample size.

Remember, though, that bigger samples cost more money and effort.

Page 13: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Margin of Error: An Example Suppose a candidate is planning a poll and

wants to estimate voter support within 3% with 95% confidence. How large a sample is needed?

*

2

0.03 1.96

Worst case (largest sample size): .5

.5 .50.03 1.96 0.03 1.96 .5 .5

1.96 .5 .532.67 32.67 1067.1

0.03Round up, so sample size needs to be 1068 to keep the margin of er

pq pqME z

n np

nn

n n

ror

as small as 3% with a confidence level of 95%.

Page 14: Chapter 19: Confidence Intervals for Proportions “Far better an approximate answer to the right question,…than an exact answer to the wrong question.”

Violation of Assumptions

Watch out for biased samples. Check potential sources of bias.

Relying on voluntary response

Undercoverage of the population

Nonresponse bias

Response bias

Think about independence.