A report gives \(\hat p=0.30\), rounded to the nearest hundredth, from a sample of \(500\). The report does not provide the unrounded sample proportion.
What range of values is possible for the \(95\%\) margin of error computed from the unrounded \(\hat p\)?
Hints
- Convert the rounded point estimate into an interval, then restrict it to sample proportions obtainable from a whole-number count out of \(500\).
- Determine how estimated variability changes across the attainable values.
- Evaluate the margin of error at the smallest and largest attainable sample proportions.
Solution
1. Rounding to \(0.30\) means \(0.295\le \hat p<0.305\).
2. Because \(\hat p=x/500\) for a whole-number success count, the possible counts are \(148\), \(149\), \(150\), \(151\), and \(152\). Thus, the possible sample proportions range from \(0.296\) through \(0.304\) in increments of \(0.002\).
3. Over these values, which are below \(0.50\), the product \(\hat p(1-\hat p)\) and the margin of error increase as \(\hat p\) increases.
4. At \(\hat p=0.296\), \(E=1.96\sqrt{\frac{(0.296)(0.704)}{500}}\approx 0.04001\). At \(\hat p=0.304\), \(E=1.96\sqrt{\frac{(0.304)(0.696)}{500}}\approx 0.04032\).
Answer
The possible margin of error ranges from approximately \(0.04001\) to \(0.04032\), inclusive.