Step 1 :Given a sample of 514 suspected criminals, 164 of them were captured. We are asked to construct the $95 \%$ confidence interval for the population proportion of people who are captured after appearing on the 10 Most Wanted list.
Step 2 :First, we calculate the sample proportion ($\hat{p}$) which is the proportion of people who were captured. This is calculated as $\hat{p} = \frac{x}{n}$, where $x$ is the number of successes (people captured) and $n$ is the sample size. Substituting the given values, we get $\hat{p} = \frac{164}{514} = 0.319$.
Step 3 :Next, we find the Z-score for the desired confidence level. For a $95 \%$ confidence level, the Z-score is approximately 1.96.
Step 4 :We then calculate the standard error (SE) using the formula $SE = \sqrt{\frac{\hat{p}(1-\hat{p})}{n}}$. Substituting the values we have, we get $SE = \sqrt{\frac{0.319(1-0.319)}{514}} = 0.021$.
Step 5 :The margin of error (ME) is then calculated as $ME = Z \times SE = 1.96 \times 0.021 = 0.041$.
Step 6 :Finally, we calculate the lower and upper endpoints of the confidence interval by subtracting and adding the margin of error from/to the sample proportion, respectively. The lower endpoint is $\hat{p} - ME = 0.319 - 0.041 = 0.278$ and the upper endpoint is $\hat{p} + ME = 0.319 + 0.041 = 0.360$.
Step 7 :\(\boxed{\text{Final Answer: The $95 \%$ confidence interval for the population proportion of people who are captured after appearing on the 10 Most Wanted list is approximately $[0.278, 0.360]$.}}\)