A study was conducted to determine the proportion of people who dream in black and white instead of color. Among 288 people over the age of 55, 68 dream in black and white, and among 297 people under the age of 25, 15 dream in black and white. Use a 0.05 significance level to test the claim that the proportion of people over 55 who dream in black and white is greater than the proportion for those under 25. Complete parts (a) through (c) below. Identify the p value? Test the claim by constructing an appropriate confidence level? What is the conclusion base on the hypothesis test? What is the conclusion base on the confidence level?
H0 : p1 =p2
Ha: p1 > p2
test statistics:
p1 = 68/288 = 0.236
p2 = 15/297 = 0.051
pcap = (68 + 15)/(288 + 297) = 0.1419
z = (p1 - p2)/sqrt(pcap*(1-pcap)/ *(1/n1+ 1/n2))
= (0.236 - 0.051) /sqrt(0.1419 *(1-0.1419) *(1/288+1/297))
= 6.41
p value = 0.0001
Reject H0 as p value < 0.05
z value at 95% = 1.96
CI = (p1 - p2) +/- z *sqrt(p1*(1-p1)/n1 + p2*(1-p2)/n2_
= (0.236 - 0.051) +/- 1.96 *sqrt(0.236*(1-0.236)/288 +
0.051*(1-0.051)/297)
= (0.1133 , 0.2579 )
As the confidence interval does not contain hypothesised value 0 So, reject H0
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