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1 1 CUINE IVI Calculator X + -s/35882/assignments/4122612?module_item_id=13064730 NP3 - Your answer is partially correct. Use
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Answer #1

a) The point estimate for the difference in proportion is computed here as :

\hat p_1 - \hat p_2 = 0.73 -0.68 = 0.05

Therefore 0.05 is the best estimate value here.

b) From standard normal tables, we have:
P(-1.645 < Z < 1.645) = 0.9

The pooled proportion here is computed as:
P = \frac{p_1 n_1 + p_2 n_2}{n_1 + n_2} = \frac{0.73*520 + 0.68*240}{520 + 240} = 0.7142

The standard error now is computed here as:

SE = \sqrt{P(1-P)(\frac{1}{n_1} + \frac{1}{n_2})} = \sqrt{0.7142(1 - 0.7142)(\frac{1}{520} + \frac{1}{240})} = 0.0353Now the margin of error here is computed as:

MOE = z*SE = 1.645*0.0353 = 0.0580

Therefore 0.0580 is the required margin of error here.

The confidence interval here is thus obtained as:

p1 + p2 +- MOE

0.05 +- 0.0580

(-0.0080, 0.1080)

This is the required 90% confidence interval here.

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