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Problem 4: Errors in medical prescriptions occur and a study examined whether electronic prescribing may help reduce errors.
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a).

We are given number of errors in written prescription x_{w}=1478

Total number of written prescriptions n_{w}=3848

Therefore the proportion of errors using written prescriptions  \hat{p}_{w}=\frac{x_{w}}{n_{w}}=\frac{1478}{3848}=0.3841

We are given number of errors in electronic prescription x_{e}=254

Total number of electronic prescriptions n_{e}=3848

Therefore the proportion of errors using electronic prescriptions  \hat{p}_{e}=\frac{x_{e}}{n_{e}}=\frac{254}{3848}=0.0660

The 99% confidence interval for the difference in population proportion for p_{w}-p_{e} is given by

CI=\hat{p}_{w}-\hat{p}_{e}\mp Z_{1-\alpha /2}\sqrt{\frac{\hat{p}_{w}(1-\hat{p}_{w})}{n_{w}}+\frac{\hat{p}_{e}(1-\hat{p}_{e})}{n_{e}}}

The tabulated value is Z=2.576 which is given. Substituting, we get

CI=0.3841-0.066\mp 2.576\sqrt{\frac{0.3841(1-0.3841)}{3848}+\frac{0.066(1-0.066)}{3848}}

CI=0.3181\mp 2.576\sqrt{\frac{0.3841(0.6159)}{3848}+\frac{0.066(0.934)}{3848}}

CI=0.3181\mp 2.576\sqrt{\frac{0.23656}{3848}+\frac{0.061644}{3848}}

CI=0.3181\mp 2.576\sqrt{0.00006148+0.0000160}

CI=0.3181\mp 2.576\sqrt{0.0000775}

CI=0.3181\mp 2.576*0.0088

CI=0.3181\mp 0.0227

CI=(0.2954,0.3408)

The 99% confidence interval for the difference in population proportion for p_{w}-p_{e} is given by (0.295,0.341)

b). Based on the data provided, the 99% confidence interval for the difference between the population proportions p_{w}-p_{e} is 0.295 and 0.341, which indicates that we are 99% confident that the true difference between population proportions is contained by the interval (0.295, 0.341).

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