In: Statistics and Probability
An insurance company collects data on seat-belt use among drivers in a country. Of
2000 drivers
30 -39 years old,
23%
said that they buckle up, whereas
482
of
1800
drivers
55-64
years old said that they did. Find a
90%
confidence interval for the difference between the proportions of seat-belt users for drivers in the age groups
30-39
years and
55-64
years.
Construct a
90%
confidence interval.
solution:-
given that n1 = 2000 ,
p1 = 23% = 0.23
and
n2 = 1800 here x2 = 482
then p2 = x2/n2 = 482/1800 = 0.27
the value of 90% confidence from z table is 1.645
confidence interval formula for the difference between the proportions
=> (p1-p2) +/-z * sqrt(p1(1-p1)/n1 + p2(1-p2)/n2)
=> (0.23-0.27) +/- 1.645 * sqrt(0.23*(1-0.23)/2000 + (0.27*(1-0.27)/1800))
=> (-0.0632 to -0.0168)
=> (-0.063 to -0.017) round to three decimal places