A website is trying to increase registration for first-time visitors, exposing 1% of these visitors to a new site design. Of 752 randomly sampled visitors over a month who saw the new design, 64 registered.
Check any conditions required for constructing a confidence interval.
Compute the standard error.
Construct and interpret a 90% confidence interval for the fraction of first-time visitors of the site who would register under the new design (assuming stable behaviors by new visitors over time).
possible_entries <- c(rep("registered", 64), rep("not", 752 - 64))
summary(possible_entries)
## Length Class Mode
## 752 character character
## [1] 64
## [1] 688
The data must be sampled randomly and sample values must be independent. We meet this condition.
The data must be no more than 10% of the population. We meet this condition.
The sample size is considered suffciently large when np >= 10 and n(1 - p) >= 10.
n = 752
p = 0.01
(n * p) >= 10
## [1] FALSE
(n * (1 - p)) >= 10
## [1] TRUE
Our sample is not suffciently large.
se = sqrt((p * (1 - p) / n))
se
## [1] 0.003628346
90% confidence interval is 1.65
yes_percent = yes_val * 100 / 752 # 8.510638
no_percent = no_val * 100 / 752
pe = yes_percent / 100 # 0.08510638
ci1 = pe - 1.65 * se
ci2 = pe + 1.65 * se
round(ci1 * 100, digits = 1)
## [1] 7.9
round(ci2 * 100, digits = 1)
## [1] 9.1
We are 90% confident that the actual proportion of first-time visitors of the site who would register under the new design is between 7.9% and 9.1%.