In: Math
A random sample of 350 bolts from machine A contained 35 defective bolts, while an independently chosen, random sample of 250 bolts from machine B contained 17 defective bolts. Let P1 be the proportion of the population of all bolts from machine A that are defective, and let P2 be the proportion of the population of all bolts from machine B that are defective. Find a 99% confidence interval for P1-P2. Then complete the table below. Carry your intermediate computations to at least three decimal places. Round your responses to at least three decimal places. (If necessary, consult a list of formulas.) What is the lower limit of the 99% confidence interval? What is the upper limit of the 99% confidence interval?
Let be the proportion of the population of all bolts from machine A that are defective, and let be the proportion of the population of all bolts from machine B that are defective
From the samples we know the following
Overall proportion of defects is
The standard error of the difference between 2 proportions is
We can use normal distribution as the approximation to the sampling distribution of difference in proportions.
The significance level for 99% confidence interval is
The right tail critical value is
Using the standard normal table we can get for z=2.58 P(Z<2.58) = 0.995.
Hence
99% confidence interval is
ans: The lower limit of the 99% confidence interval is -0.028
The upper limit of the 99% confidence interval is 0.092