Answer: A 95% confidence interval for the true proportion (p) will be (0.4762136, 0.5637864).
Step-by-step explanation:
Let p = True proportion of people rent their residence.
Given: n= 500
People rent their residence = 260
[tex]p=\dfrac{260}{500}=0.52[/tex]
z-value for 95% confidence level = 1.96
A 95% confidence interval for the true proportion will be :
[tex]p\pm z^*\sqrt{\dfrac{p(1-p)}{n}}[/tex]
[tex]0.52\pm (1.96)\sqrt{\dfrac{0.52(1-0.52)}{500}}\\\\=0.52\pm(1.96\sqrt{\dfrac{0.2496}{500}})\\\\=0.52\pm 1.96\sqrt{0.0004992}\\\\=0.52\pm (1.96)(0.02234)\\\\=0.52\pm0.0437864\\\\=(0.52-0.0437864,\ 0.52+0.0437864)\\\\=(0.4762136,\ 0.5637864)[/tex]
A 95% confidence interval for the true proportion (p) will be (0.4762136, 0.5637864).
