Question

2. Hypothesis Testing You are interested in knowing whether the share ofpeople who smoke is the same in California and Florida. You collect a random sample of1,000 California residents and 900 Florida residents. You ask each ofthem whether they smoke or not and create a binary (dummy) variable smoke 1 ifthey say"Yes" and smoke-0if they say "No" a) Write the Stata command you would use to find the mean and standard deviation in sokers for each state Using the command you mentioned above, you find the following Descriptive Statistics for Smoke Variable in each Sample Obs 1,000 900 State Min Std. Dev 0.24 0.21 Maz eann 0.15 0.20 California Florida Construct the 90% confidence interval for the share of smokers in California. Construct the 90% confidence interval for the difference in the share of smokers between California and Florida b) c)

Answer 1

SOLUTION

a.

1% 2.3283 -2 0 2 3

b.

c.