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10.86 Calculate the maximum error of estimate for a \(90 \%\) confidence interval for the difference between two proportions for the following cases:a. \(\ n_{1}=40, p_{1}^{\prime}=0.7, n_{2}=44,\) and \(p_{2}^{\prime}=0.75\) b. \(\ n_{1}=36, p_{1}^{\prime}=0.33, n_{2}=38,\) and \(p_{2}^{\prime}=0.42\)

Short Answer

Expert verified
The steps described above provide the method to calculate the maximum error of estimate for a 90% confidence interval for the difference between two proportions.

Step by step solution

01

Identify the Given Variables

Firstly, the variables from the exercise must be highlighted. For both case a and b, we have: the sample sizes \(n_1\) and \(n_2\), and proportions \(p_1^\prime\) and \(p_2^\prime\) for the two groups respectively.
02

Calculate the Standard Errors

Next, the standard errors for the two population proportions for each case should be calculated using the formula: \[SE = \sqrt{{p(1-p)}/{n}}\] where p is the sample proportion and n is the sample size. This equation must be calculated separately for each of both audiences.
03

Calculate the Standard Error of the Difference

Then, the standard error of the difference between the two proportions must be calculated. This is done using the formula: \[SE_{p_1-p_2} = \sqrt{SE_{p_1}^2 + SE_{p_2}^2}\]
04

Find the Z Value for the Desired Confidence Level

Next, refer to a standard Z table to locate the Z value that corresponds to the 90% confidence level, which is 1.645 (as our desired confidence level is 90%).
05

Calculate the Margin of Error

The margin of error can then be found by multiplying the Z value by the calculated standard error of the difference. So, we get: \[E = Z*SE_{p_1 - p_2}\] Never forget, each case should have its own calculations.
06

Repeat for each case

As there are two cases in this exercise, repeat steps 1 through 5 for each case to get the maximum error for each case.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Interval
Understanding confidence intervals is crucial when you want to estimate the range within which a population parameter lies, based on sample data. When we discuss a 90% confidence interval, for instance, we're talking about the range surrounding a sample estimate that, hypothetically, would contain the true population parameter in 90 out of 100 repeated samples. It's not about the probability that the true value lies within this specific interval, but rather about the long-term reliability of the method used to create the interval.

The formula we use incorporates the sample estimate, the margin of error, and the standard error, which are affected by both sample size and variance within the data. Remember, the wider the interval, the more uncertain we are about the population parameter, and vice versa. The key takeaway is that a confidence interval gives us a range, not a precise value, but informs us about the degree of certainty we can attribute to our estimate.
Sample Proportions
When working with sample proportions, like in our exercise involving two different groups with distinct sample sizes and proportions, understanding the concept of a sample proportion (\( p^\textprime \)) is essential. A sample proportion is a decimal between 0 and 1 that represents the fraction of the sample with a particular characteristic. For example, if we have 40 individuals, and 28 show a certain characteristic, the sample proportion would be \( p^\textprime = \frac{28}{40} = 0.7 \).

This measure plays a pivotal role in calculating the confidence interval for proportions, as it's a crucial component in determining the standard error and, subsequently, the margin of error. Always be cautious to differentiate between sample proportions and population proportions - the latter is usually what we're trying to estimate using the sample data.
Standard Error
The standard error of a statistic is a measure of the variability or precision of that statistic as an estimate of the corresponding population parameter. Basically, it tells us how far we might expect the sample estimate to vary if we repeated the survey or experiment multiple times.

The formula \[ SE = \t\frac{p(1-p)}{n} \] results in the standard error for a single proportion, while in comparing two proportions, we must consider the standard errors of both and combine them to measure the variability in the difference between these two estimates. The combined standard error of the difference plays a critical role in constructing a confidence interval for the difference between two proportions, as it reflects the combined sample's variability.
Margin of Error
The term margin of error represents the extent to which you can expect your survey results to reflect the views of the overall population. It's expressed as a plus-or-minus value and is most often seen alongside public opinion poll results. For instance, a 3% margin of error means the true population value could be 3 percentage points higher or lower than the sample estimate.

In calculations, it's found by multiplying the standard error by the z-score associated with our desired level of confidence. The resulting margin of error is what we add and subtract from our sample estimate to define the bounds of the confidence interval. Keep in mind that the margin of error increases with decreased sample sizes and higher variability within the sample.
Z-score
A z-score is a statistical measurement describing a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean. When constructing confidence intervals, we use a z-score to determine how far out from the sample proportion our margin of error extends; the z-score correlates to the desired level of confidence.

In a 90% confidence interval, we use the z-score that cuts off the outer 10% of the distribution, split across both tails of the curve. For example, a z-score of 1.645 corresponds to the critical value for a 90% confidence interval. This means that 90% of the distribution of our estimates lies between -1.645 and +1.645 standard deviations from the mean. The z-score is a fundamental component of our confidence interval calculations as it adjusts the width of the interval according to our confidence level.

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Most popular questions from this chapter

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