Question

In recent years, a number of new commercial ride hailing apps have entered the market. A Pew research studey in 2016 examined several demographic variables of users of ride hailing apps (such as Lyft or Uber). Of the 4787 adults included in the survey, 2369 were college graduates, of which 687 had used a ride-hailing app. Among the 2418 adults who had not completed college, 268 of them had used a ride hailing app.

(a) Give an estimate for the difference in proportions of adults with and without college degrees who have used ride-hailing apps using a 90% confidence interval.

(b) Is there good evidence that the proportion of adults who have used a ride-hailing app is different between college graduates and those without college degrees? Use an appro- priate significance test to answer this question.

Answer 1

(a) The 90% confidence interval for the difference in proportions of adults with and without college degrees who have used ride-hailing apps is between 0.3682 and 0.3999.

(b) The hypothesis being tested is:

H0: p1 = p2

Ha: p1 ≠ p2

The p-value is 0.0000.

Since the p-value (0.0000) is less than the significance level (0.05), we can reject the null hypothesis.

Therefore, we can conclude that the proportion of adults who have used a ride-hailing app is different between college graduates and those without college degrees.

p1	p2	pc
0.4949	0.1108	0.366	p (as decimal)
2369/4787	268/2418	2637/7205	p (as fraction)
2369.	268.	2637.	X
4787	2418	7205	n
	0.384	difference
	0.	hypothesized difference
	0.012	std. error
	31.96	z
	0.00E+00	p-value (two-tailed)
	0.3682	confidence interval 90.% lower
	0.3999	confidence interval 90.% upper
	0.0159	margin of error

Please give me a thumbs-up if this helps you out. Thank you!