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Calculate the margin of error in estimating a binomial proportion for each of the following values of \(n\). Use \(p=.5\) to calculate the standard error of the estimator. a. \(n=30\) b. \(n=100\) c. \(n=400\) d. \(n=1000\)

Short Answer

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Question: Calculate the margin of error in estimating a binomial proportion with a probability of success of 0.5 for the following sample sizes: a) 30, b) 100, c) 400, and d) 1000. Answer: a) For a sample size of 30, the margin of error is approximately 1.96 × √(0.25/30). b) For a sample size of 100, the margin of error is approximately 1.96 × √(0.25/100). c) For a sample size of 400, the margin of error is approximately 1.96 × √(0.25/400). d) For a sample size of 1000, the margin of error is approximately 1.96 × √(0.25/1000).

Step by step solution

01

a. Calculating the margin of error for \(n = 30\)

First, calculate the standard error of the estimator using the formula \(SE = \sqrt{\frac{p(1-p)}{n}}\). In this case, \(p = 0.5\) and \(n = 30\). \(SE = \sqrt{\frac{0.5(1-0.5)}{30}} = \sqrt{\frac{0.25}{30}}\) Next, calculate the margin of error using the formula \(MOE = 1.96 \times SE\). \(MOE = 1.96 \times \sqrt{\frac{0.25}{30}}\)
02

b. Calculating the margin of error for \(n = 100\)

First, calculate the standard error of the estimator using the formula \(SE = \sqrt{\frac{p(1-p)}{n}}\). In this case, \(p = 0.5\) and \(n = 100\). \(SE = \sqrt{\frac{0.5(1-0.5)}{100}} = \sqrt{\frac{0.25}{100}}\) Next, calculate the margin of error using the formula \(MOE = 1.96 \times SE\). \(MOE = 1.96 \times \sqrt{\frac{0.25}{100}}\)
03

c. Calculating the margin of error for \(n = 400\)

First, calculate the standard error of the estimator using the formula \(SE = \sqrt{\frac{p(1-p)}{n}}\). In this case, \(p = 0.5\) and \(n = 400\). \(SE = \sqrt{\frac{0.5(1-0.5)}{400}} = \sqrt{\frac{0.25}{400}}\) Next, calculate the margin of error using the formula \(MOE = 1.96 \times SE\). \(MOE = 1.96 \times \sqrt{\frac{0.25}{400}}\)
04

d. Calculating the margin of error for \(n = 1000\)

First, calculate the standard error of the estimator using the formula \(SE = \sqrt{\frac{p(1-p)}{n}}\). In this case, \(p = 0.5\) and \(n = 1000\). \(SE = \sqrt{\frac{0.5(1-0.5)}{1000}} = \sqrt{\frac{0.25}{1000}}\) Next, calculate the margin of error using the formula \(MOE = 1.96 \times SE\). \(MOE = 1.96 \times \sqrt{\frac{0.25}{1000}}\)

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Binomial Proportion
The binomial proportion involves a statistical experiment with two possible outcomes: success or failure. We denote it often as \( p \), representing the probability of success in a trial. In calculations, like margin of error, choosing a value for \( p \) is crucial. A common practice when specifics are unknown is to use \( p = 0.5 \) because it shows maximum variability. This maximizes the estimate's uncertainty, providing a conservative measure for safety. Using this value helps ensure our calculated margin of error encompasses the real-world proportions.
Standard Error
Standard Error (SE) quantifies the variability or spread of a sampling distribution. In our context, the standard error of a binomial proportion tells us how much the proportion \( p \) might vary from one sample to another. We calculate it using the formula:
  • \( SE = \sqrt{\frac{p(1-p)}{n}} \)
Here, \( p \) is the probability of success (here often set at 0.5 for caution), \( 1-p \) is the probability of failure, and \( n \) is the number of observations or trials. A smaller SE indicates that the sample proportion is likely to be close to the true population proportion. Thus, it influences the margin of error by providing the base for its computation.
Estimator
An estimator refers to a rule or a formula we use to make inferences about our population of interest based on sample data. In terms of binomial proportions, we use the sample proportion (\( \hat{p} \)) as an estimator of the true population proportion \( p \). A good estimator should be unbiased and have low variability. The standard error assists here by informing us about the variability, telling us how good our estimator might be. Lower variability implies greater reliability of our estimator.
Confidence Interval
A confidence interval is a range of values, derived from sample data, that likely contains the population parameter of interest, in this case, the true binomial proportion \( p \). The margin of error (MOE) helps construct this interval. The formula for a confidence interval (CI) around a proportion is:
  • \( \hat{p} \pm \text{MOE} \)
This approach guarantees that if we were to repeat our study many times, the true proportion would lie within this interval in a certain percentage of those studies (commonly 95% for a standard \( 1.96 \)). Knowing the CI helps express our uncertainty about the estimator and provides a clear picture of where the true proportion can fall.

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Most popular questions from this chapter

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