Question

1. Assuming n1 = n2, p1 ≈ .4, p2 ≈ .7, sampling error = .01, and a confidence interval of 99%, estimate (p1 – p2).

A. 24,696

B. 28,369

C. 29,392

D. 29,954

2. The line for which the Sum of Errors (SSE) is at a minimum is called a regression line, and it's obtained using the method of _______.

A. Prediction
B. Null Hypothesis Testing
C. Least Squares

D. Probabilistic Models

Answer 1

1. We need to find the sample size, n here. We have the following formula of the sampling error:

SE = 0.01

z = 2.58 at alpha = 0.01

Hence, inputting the values into the formula, we get:

0.01 = 2.58*√((0.4*0.6 + 0.7*0.3)/n))

n = 29954

Hence, D) is correct

2. The regression line is obtained using the method of Least squares method, which is the method to find the best fit line when the sum of squares are minimum

Hence, C) is correct.