Here $p$ is the probability of a success in a single trial, $n$ is the number of trials, and $X$ is a random variable representing the number of successes in a run of $n$ trials. On average you would expect to get $pn$ successes, expected value of $X$ is $pn$. The expected value of $\frac{X}n$ is therefore $\frac{pn}n=p$. If we define $\hat p$ to be $\frac{X}n$, the fraction of trials that are successes, we expect it to be about $p$, give or take a bit.
That ‘give or take a bit’ is measured by the standard deviation $\sigma_{\hat p}=\sqrt{\frac{p(1-p)}n}$. Now when $n$ is reasonably large, both $X$, the number of successes, and $\hat p$, the fraction of successes, are approximately normally distributed. The mean of the normal distribution that approximates $\hat p$ is $p$, the expected value of $\hat p$, and its standard deviation is $\sigma_{\hat p}$.
The standard normal distribution, however, has a mean of $0$ and a standard deviation of $1$, so in order to use the standard tables prepared from it, you have to shift and rescale the distribution of $\hat p$ so that it has a mean of $0$ and a standard deviation of $1$. The formula does this in two steps. First it replaces $\hat p$ by $\hat p-p$. Thus, if you get a sample that hits the expected fraction of successes on the nose, your $\hat p$ will equal $p$, and $\hat p-p$ will be $0$. More generally, $\hat p-p$ measures measures the deviation of your sample’s fraction of successes from the expected fraction; when $\hat p-p>0$, you got more than the average number of successes, and when $\hat p-p<0$, you got fewer. Subtracting $p$ from $\hat p$ just shifts the centre of the distribution from $p$ down to $0$: since the mean value of $\hat p$ is $p$, the mean value of $\hat p-p$ is $0$.
Then we want to rescale the distribution to standardize its spread, so that it has a standard deviation of $1$. Right now its standard deviation is still $\sigma_{\hat p}$: shifting it down by $p$ units doesn’t change its shape, or how must it’s spread out. We want to convert each $\sigma_{\hat p}$ units of spread to $1$ unit. This is like wanting to convert a spread in feet to a spread in yards: you have to divide by the $3$ feet per yard. Here I have to divide by the $\sigma_{\hat p}$ $\hat p$-units per standard unit; the result is
$$\frac{\hat p-p}{\sigma_{\hat p}}=\frac{\hat p-p}{\sqrt{p(1-p)/n}}\;.$$
For convenience let’s call this quantity $Y$. $Y$ is $\hat p$ shifted down by $p$ units and rescaled to have a standard deviation of $1$. Since $\hat p$ is approximately normally distributed, so is $Y$, and its mean and standard deviation are $0$ and $1$, respectively. This means that $Y$ is approximated by the standard normal distribution.
Suppose that $Z$ is a random variable with the standard normal distribution.
If $0<\alpha\le\frac12$, $z_\alpha$ is by definition the number with the property that $P(Z\ge z_\alpha)=\alpha$. Thus, $P(Z\ge z_{\alpha/2})=\alpha/2$. The standard normal distribution is symmetric about its mean $0$, so $P(Z\le -z_{\alpha/2})=\alpha/2$ as well. Thus, $$P(Z\le -z_{\alpha/2}\text{ or }Z\ge z_{\alpha/2})=\frac{\alpha}2+\frac{\alpha}2=\alpha\;,$$ and hence $$P(-z_{\alpha/2}<Z<z_{\alpha/2})=1-\alpha\;:$$ the probability that $Z$ falls between $-z_{\alpha/2}$ and $z_{\alpha/2}$ is $1-\alpha$.
Finally, $Y$ is distributed approximately like $Z$, with the same mean and standard deviation, so the same is approximately true of $Y$:
$$P(-z_{\alpha/2}<Y<z_{\alpha/2})\approx 1-\alpha\;.\tag{1}$$
And since $$Y=\frac{\hat p-p}{\sigma_{\hat p}}=\frac{\hat p-p}{\sqrt{p(1-p)/n}}\;,$$ $(1)$ reduces to
$$P\left(-z_{\alpha/2} < \frac{\hat p- p}{\sqrt{p(1-p)/n}} < z_{\alpha/2}\right) \approx 1 - \alpha\;.$$
Best Answer
Simply calculate how many people that proportion represents in each postal code, add them together, and see what proportion that is from the total population of those postal codes.
In your example those proportions represent $1324\times 0.23 + 764\times 0.42 + 943 \times 0.37 + 213 \times 0.86 = 305+321+349+183= 1158$ people. I have rounded each product to a whole number before adding them.
There are $1324+764+943+213=3244$ people all together.
For the four postal codes combined this gives a proportion of $\frac{1158}{3244}=0.36$ when rounded to two decimals.