You have restaurants in two major cities. You want to test out a new menu item....

You have restaurants in two major cities. You want to test out a new menu item. You offer a small sample to a random sample of customers in each city. You are interested in estimating the overall difference in proportion of customers between the two cities who would purchase this new item. In the first city, 64 out of 148 said that they would purchase the item if it was available. In the second city, 80 out of 302 said yes.

Estimate the overall difference in proportions of customers who would buy this product between the two cities. Use a 90% confidence level.

a) State the parameter of interest. Verify that the necessary conditions are present in order to carry out the procedure.

b) Find the margin of error.

EBP=

c) Write out the confidence interval: (,)

d) Interpret the 90% confidence interval in context.

Solutions

Expert Solution

Let denote the proportions of people who said that they would purchase the item if it was available in two cities respectively.

orchestra answered 1 year ago

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