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Use your result from Exercise 11.132to show that a (1-α)level confidence interval for the difference between two population proportions that has a margin of error of at most Ecan be obtained by choosing

n1=n2=0.5zα/2E2

rounded up to the nearest whole number.

Short Answer

Expert verified

By selecting n1=n2=0.50za/2E2, a (1-α) level confldence interval for the difference between two population proportions with a margin of error of at most E can be generated.

Step by step solution

01

Given information

Given in the question that, we need to to show that a (1-α)level confidence interval for the difference between two population proportions that has a margin of error of at most Ecan be obtained by choosing

n1=n2=0.5zα/2E2

by using the result from exercise 11.132

02

Explanation

The expressions given aren1=n2=0.50zu/2E2

When estimating the proportional differences between two populations, the margin of error is,

E=zα/2p~11-p~1n1+p~21-p~2n2

The margin of error in estimating the proportional differences between two populations is,

E=zα/2p~11-p~1n1+p~21-p~2n2

Substitute n1=n2=nand

p~11-p~1=0.25

p~21-p~2=0.25

E=zα/20.25n+0.25n

Ezα/22=0.25n+0.25n

Ezα/22=0.25+0.25n

Ezα/22=0.50n

Simplify even more,

n0.50=zα/2E2

n=0.50zα/2E2

n1=n2=0.50zα/2E2

By selecting n1=n2=0.50za/2E2, a (1-α)level confidence interval for the difference between two population proportions with a margin of error of at most Ecan be generated.

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Most popular questions from this chapter

The Organization for Economic Cooperation and Development (OECD) conducts studies on unemployment rates by country and publishes its findings in the document Main Economic Indicators. Independent random samples of 100and75 people in the civilian labor forces of Finland and Denmark, respectively, revealed 7and 3 unemployed, respectively. Find a 95% confidence interval for the difference between the unemployment rates in Finland and Denmark.

Obtain a sample size

Margin of error =0.02

Confidence level =95%

Likely range 0.4-0.7

Bank Breakup. In a nationwide survey, conducted by Pulse Opinion Research, LLC for Rasmussen Reports, a sample of American adults were asked whether they favor a plan to break up the 12megabanks, which currently control about 69%of the banking industry; 50%of those sampled responded in the affirmative. According to the report, "the margin of sampling error is ±3percentage points with a 95%level of confidence." Find and interpret a 95%confidence interval for the percentage of all American adults who favor a plan to break up the 12megabanks.

In discussing the sample size required for obtaining a confidence interval with a prescribed confidence level and margin of error, we made the following statement: "... we should be aware that, if the observed value of p^is closer to 0.5than is our educated guess, the margin of error will be larger than desired." Explain why.

One-Proportion Plus-Four z-Interval Procedure. To obtain a plus four z-interval for a population proportion, we first add two successes and two failures to our data (hence, the term "plus four") and then apply Procedure 11.1on page 454to the new data. In other words, in place of p^(which is x/n), we use p~=(x+2)/(n+4). Consequently, for a confidence level of 1-α, the endpoints of the plus-four z-interval are

p~±za/2·p~(1-p~)/(n+4)

As a rule of thumb, the one-proportion plus-four z-interval procedure should be used only with confidence levels of 90% or greater and sample sizes of 10 or more.

Margin of error=0.02

Confidence level=95%

Educated guess=0.6

(a) Obtain a sample size that will ensure a margin of error of at most the one specified (provided of course that the observed value of the sample proportion is further from 0.5that of the educated guess.

(b). Compare your answer to the corresponding one and explain the reason for the difference, if any.

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