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During an election year, we see articles in the newspaper that state confidence intervals in terms of proportions or percentages. For example, a poll for a particular candidate running for president might show that the candidate has 40% of the vote within three percentage points (if the sample is large enough). Often, election polls are calculated with 95% confidence, so, the pollsters would be 95% confident that the true proportion of voters who favored the candidate would be between 0.37 and 0.43: (0.40 – 0.03,0.40 + 0.03).

Investors in the stock market are interested in the true proportion of stocks that go up and down each week. Businesses that sell personal computers are interested in the proportion of households in the United States that own personal computers. Confidence intervals can be calculated for the true proportion of stocks that go up or down each week and for the true proportion of households in the United States that own personal computers.

The procedure to find the confidence interval, the sample size, the error bound , and the confidence level for a proportion is similar to that for the population mean, but the formulas are different.

How do you know you are dealing with a proportion problem? First, the underlying distribution is a binomial distribution . (There is no mention of a mean or average.) If X is a binomial random variable, then X ~ B ( n , p ) where n is the number of trials and p is the probability of a success. To form a proportion, take X , the random variable for the number of successes and divide it by n , the number of trials (or the sample size). The random variable P′ (read "P prime") is that proportion,

P = X n

(Sometimes the random variable is denoted as P ^ , read "P hat".)

When n is large and p is not close to zero or one, we can use the normal distribution to approximate the binomial.

X ~ N ( n p , n p q )

If we divide the random variable, the mean, and the standard deviation by n , we get a normal distribution of proportions with P′ , called the estimated proportion, as the random variable. (Recall that a proportion as thenumber of successes divided by n .)

X n = P N ( n p n , n p q n )

Using algebra to simplify : n p q n = p q n

P′ follows a normal distribution for proportions : X n = P N ( n p n , n p q n )

The confidence interval has the form ( p′ EBP , p′ + EBP ). EBP is error bound for the proportion.

p′ = x n

p′ = the estimated proportion of successes ( p′ is a point estimate for p , the true proportion.)

x = the number of successes

n = the size of the sample

The error bound for a proportion is

E B P = ( z α 2 ) ( p q n ) where q′ = 1 – p′

This formula is similar to the error bound formula for a mean, except that the "appropriate standard deviation" is different. For a mean, when the population standard deviation is known, the appropriate standard deviation that we use is σ n . For a proportion, the appropriate standard deviation is p q n .

However, in the error bound formula, we use p q n as the standard deviation, instead of p q n .

In the error bound formula, the sample proportions p′ and q′ are estimates of the unknown population proportions p and q . The estimated proportions p′ and q′ are used because p and q are not known. The sample proportions p′ and q′ are calculated from the data: p′ is the estimated proportion of successes, and q′ is the estimated proportion of failures.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
yes that's correct
I think
Nasa has use it in the 60's, copper as water purification in the moon travel.
nanocopper obvius
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
analytical skills graphene is prepared to kill any type viruses .
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
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Source:  OpenStax, Statistics i - math1020 - red river college - version 2015 revision a - draft 2015-10-24. OpenStax CNX. Oct 24, 2015 Download for free at http://legacy.cnx.org/content/col11891/1.8
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