![]() Determine the 95% Confidence Interval for the proportion of the general population of shoppers on that web site that prefers to pay with a credit card.īefore we begin solving this problem, we need to know about creating Confidence Intervals in Excel. Problem: A random sample of 1,000 Internet shoppers on one web site was taken. Another article in this blog shows exactly how to calculate a Confidence Interval Means. A Confidence Interval for Means uses an entirely different set of statistical formulas. The 95% Confidence Interval calculated here is a Confidence Interval for Proportion, not Means. The advantages of statistical analysis in Excel to solve business statistics problems is that most problems can be solved in just one or two steps and there is no more need to look anything up on Normal Distribution tables. We are taking a random sample of 1,000 Internet shoppers on this e-commerce web site. The larger the sample size, the more accurate and smaller the confidence interval will be. The 95% Confidence Interval is the interval for which we are 95% sure that the true proportion of credit card-preferring customers lies within. This article will show you exactly how to calculate a 95% Confidence Interval in Excel of the proportion of customers on a commercial web site who prefer to pay with a credit card instead of Paypal.
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