In: Statistics and Probability
Consider two independent random samples with the following results: n1 =653 x1 =355 n2 =597 x2 =201 Use this data to find the 90% confidence interval for the true difference between the population proportions. Copy Data Step 1 of 3 : Find the point estimate that should be used in constructing the confidence interval. Round your answer to three decimal places.
Solution :
Given that,
= x1 / n1 = 355 / 653 = 0.544
1- = 0.456
= x2 / n2 = 201 / 597 = 0.337
1 - = 0.663
At 90% confidence level the z is ,
Z/2 = Z 0.05 = 1.645
90% confidence interval for p1 - p2 is
,
(
-
)
Z/2 *
[(1-
) / n1 +
(1 -
) / n2]
(0.544 - 0.337) 1.645 * [(0.544 * 0.456) / 653 + (0.337 * 0.663) / 597]
0.162 < p1 - p2 < 0.252
(0.162 , 0.252)