In: Statistics and Probability
a)
p1cap = X1/N1 = 28/194 = 0.1443
p1cap = X2/N2 = 11/162 = 0.0679
point estimate = 0.1443 - 0.0679 = 0.0764
b)
Here, , n1 = 194 , n2 = 162
p1cap = 0.1443 , p2cap = 0.0679
Standard Error, sigma(p1cap - p2cap),
SE = sqrt(p1cap * (1-p1cap)/n1 + p2cap * (1-p2cap)/n2)
SE = sqrt(0.1443 * (1-0.1443)/194 + 0.0679*(1-0.0679)/162)
SE = 0.032
For 0.9 CI, z-value = 1.6449
Confidence Interval,
CI = (p1cap - p2cap - z*SE, p1cap - p2cap + z*SE)
CI = (0.1443 - 0.0679 - 1.6449*0.032, 0.1443 - 0.0679 +
1.6449*0.032)
CI = (0.0238 , 0.129)
yes, because confidence interval does not contain 0
c)
pcap = (X1 + X2)/(N1 + N2) = (28+11)/(194+162) = 0.1096
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: p1 = p2
Alternate Hypothesis, Ha: p1 > p2
Test statistic
z = (p1cap - p2cap)/sqrt(pcap * (1-pcap) * (1/N1 + 1/N2))
z = (0.1443-0.0679)/sqrt(0.1096*(1-0.1096)*(1/194 + 1/162))
z = 2.3
P-value Approach
P-value = 0.0107
As P-value < 0.1, reject the null hypothesis.