a 90% confidence interval for the difference of two proporties was found to be (-0.08,0.03). what would be the proper decision and conclusion to make if a two sided alternative hypotheses was used where a = 0.10?
Reject the null hypothesis because 0.10 is not contained
reject the null because 0 is contained within the interval
fail to reject the null hypothesis because 0 is contained within the interval
fail to reject the null hypothesis because 0.10 is not contained within the interval
Solution:
Given: a 90% confidence interval for the difference of two proportions was found to be (-0.08,0.03).
If confidence interval includes 0 number, then it means the difference of two proportions is not different from 0 or the difference of two proportions is 0.
If both the limits are either < 0 or > 0 , then it means there is significant ifference of two proportions.
Since given confidence interval includes 0, we do not reject null hypothesis of no difference in two proportions.
Thus correct answer is:
fail to reject the null hypothesis because 0 is contained within the interval
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