Solution :
Given that :-
adults indicated that they liked the show : x1 = 98
in random independent sample : n1 = 200
teenagers indicated that they liked the show : x2 = 224
in random independent sample : n2 = 400
Now we need to find out the lower and upper limits of 90% confidence interval
we know that
CI = (P1 - P2) +/- Zsqrt((P1Q1/n1) + (P2Q2/n2))
where,
=> proportion of all adults P1 = x1/n1
= 98/200
= 0.490
Q1 = 1 - P1
= 1- 0.490
= 0.510
=> proportion of all teens P2 = x2/n2
= 224/400
= 0.560
Q2 = 1 - P2
= 1- 0.560
= 0.440
=> For 90% confidence interval , Z = 1.645
=> The 90% confidence interval for p1 - p2 is
=> (P1 - P2) +/- Zsqrt((P1Q1/n1) + (P2Q2/n2))
=> (0.490 - 0.560) +/- 1.645((0.490*0.510/200) + (0.560*0.440/400))
=> -0.07 +/- 1.645 (0.00124) + (0.000616)
=> -0.07 +/- 1.645 (0.00185)
=> -0.07 +/- 0.00304
=> ( -0.07-0.00304)
=> (-0.073)
=>(-0.07 + 0.00304)
=> (-0.066)
90% confidence interval of
=> Lower limit =(-0.073)
=> Upper limit =(-0.066)
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