Suppose an advocacy organization surveys 843843 citizens of Country A and 406406 of them reported being born in another country. Similarly, 1919 out of 128128 citizens of Country B reported being foreign-born. Find the standard error of the difference in the two proportions.
Solution:
The formula for standard error for difference between two population proportions is given as below:
Standard error = Sqrt[(P1*(1 – P1)/n1) + (P2*(1 – P2)/n2)]
We are given
x1 = 406
x2 = 19
First sample size = n1=843
Second sample size = n2 = 128
First sample proportion = P1 = x1/n1 = 406/843 = 0.481613
Second sample proportion = P2 = x2/n2 =19/128 = 0.148438
Standard error = Sqrt[(P1*(1 – P1)/n1) + (P2*(1 – P2)/n2)]
Standard error = Sqrt[(0.481613*(1 - 0.481613)/843) + (0.148438*(1 - 0.148438)/128)]
Standard error = Sqrt(0.001283691)
Standard error = 0.035828639
Standard error = 0.0358
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