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5. Two brands of coffee were compared. Two independent random samples of 50 people each were...

5. Two brands of coffee were compared. Two independent random samples of 50 people each were asked to taste either Brand A or Brand B coffee, and indicate whether they liked it or not. Eighty four percent of the people who tasted Brand A liked it; the analogous sample proportion for Brand B was ninety percent.

(A) [8] At α = 0.01, is there a significant difference in the proportions of individuals who like the two coffees? Use the p-value approach.

(B) [1] What is the critical value(s) for the test in Part(A)?

(C) [2] Construct a 99% confidence interval for the difference in the proportions of people who like Brand A and Brand B coffees.

(D) [2] Do we use the same estimate of the standard deviation of ˆp1 − pˆ2 in parts (A) and (C)? Explain.

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