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population proportions: (large samples)
As it was discussed earlier, for a large sample the sample proportion is approximately normally distributed with mean p and standard deviation
.
Suppose that a random sample of size observations from a population with proportion of “success”
has a sample proportion of success
, and that an independent random sample of size
observations from a population with proportion of “success”
yields sample proportion
.
Since and
both are large, their sample proportions
and
are approximately normally distributed with means
and
, and standard deviations
and
respectively.
Then the random variable , and the variance
.
The standardized random variable
is approximately standard normal.
In order to find confidence interval for , we must either know or estimate the quantity of
.
We can estimate the population proportion by the sample proportion
; and we can estimate the population proportion
by the sample proportion
. Then
Then an approximate confidence interval is given by
where
.
Example:
Mike and Tom like to throw darts. Mike throws 100 times and hits the target 54 times; Tom throws 100 times and hits the target 49 times. Find a 95 % confidence interval for , where
represents the true proportion of hits in Mike’s tosses, and
represents the true proportion of hits in Tom’s tosses.
Solution:
and
Thus, with 95 % confidence we can state that the difference between the proportions of Mike’s and Tom’s tosses is between -0.088 and 0.188.
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