In 1996, the General Social Survey asked, "On the whole, do you think it should be the governments responsibility to provide industry with the help that it needs to grow?" For this question, 206 people said that it definitely should out of 1572 randomly selected people. What is the 90% confidence interval for the proportion of all Americans that believe who it is the government's responsibility?

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The 90% confidence interval for the proportion of all Americans that believe who it is the government's responsibility is (0.117, 0.145).

For a proportion of [tex]\pi[/tex] in a sample of size n, with a confidence level of [tex]\alpha[/tex], the confidence interval for the proportion is as follows:

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the z-score that has a p-value of [tex]\frac{1+\alpha}{2}[/tex].

For this question, 206 people said that it definitely should out of 1572 randomly selected people.

This means that [tex]n = 1572, \pi = \frac{206}{1572} = 0.1310[/tex]

90% confidence level

So [tex]\alpha = 0.9[/tex], z is the value of Z that has a p-value of [tex]\frac{1+0.9}{2} = 0.95[/tex], so [tex]Z = 1.645[/tex].  

The lower limit of this interval is:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.131 - 1.645\sqrt{\frac{0.131(0.869)}{1572}} = 0.117[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.131 + 1.645\sqrt{\frac{0.131(0.869)}{1572}} = 0.145[/tex]

The confidence interval is (0.117, 0.145).

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