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confidence interval for a sample proportion, p, when the sample size is

sufficiently large.
This method applies when
The approach described in this lesson is valid whenever the following
conditions are met:

The sampling method is simple random sampling.

The sample is sufficiently large. ( this we will see later what is large.
Here 321 senior citizen , we will consider as a sufficiently large )

To construct a confidence interval for a sample proportion, we need to know


the variability of the sample proportion. ( What is dispersion from the mean,
This means we need to know how to compute the standard deviation and/or
thestandard error of the sampling distribution.
Here Standard Deviation is not given. Hence we need to use the method
of finding the standard error.
Rule:
where p is the sample proportion, n is the sample size, and N is the
population size. When the population size at least 10 times larger than the
sample size, the standard error can be approximated by:
SEp = sqrt[ p * ( 1 - p ) / n ]
Here
pwill be the proportion 61/321= 0.19
1-p will be (1-0.19)= 0.81
n= 321
Hence SE for proportion will be sqrt[ 0.19*0.81/321)= 0.219
This is equivalent to Standard Deviation.
Now confidence interval is given as 95%. As explained in the Z score ,
95% of area is covered when z score is around 1.96 times of Standard
Deviation ( here standard error)

That implies the senior citizens owning computers at 95% confidence


level is within a distance of + or 1.96 times of 0.219. 1.96*0.0219=
0.0429
( concept :This is called Margin of Error . that is Z score * Standard
Error
Margin of Error= Z* Sqrt(p*(1-P)/Sample) ]
So confidence interval range will be from the proportion which has a
computer. That is 0.19- 0.0429 to 0.19+.0429
0.147 to 0.233 or 14.7% to 23.3%
Hence answer 3 will be correct.

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