Bob and Jill each conduct a survey. Bob finds that 22 out of his 100 people read more online books. Jill on the other hand finds that 77 out of her 100 people read more physical books |
Calculate a 2 sample Z interval for proportions to determine the interval of the difference between the amount of readers for physical books and online books. |
Since the confidence level is not mentioned, I am assuming it to be 95%
n1 = 100
n2 = 100
p1 = 0.77
p2 = 0.22
% = 95
Pooled Proportion, p = (n1 p1 + n2 p2)/(n1 + n2) = (100 * 0.77 + 100 * 0.22)/(100 + 100) = 0.495
q = 1 - p = 1 - 0.495 = 0.505
SE = √(pq * ((1/n1) + (1/n2))) = √(0.495 * 0.505 * ((1/100) + (1/100))) = 0.070707142
z- score = 1.959963985
Width of the confidence interval = z * SE = 1.95996398454005 * 0.0707071424963561 = 0.138583453
Lower Limit of the confidence interval = (p1 - p2) - width = 0.55 - 0.138583452742599 = 0.411416547
Upper Limit of the confidence interval = (p1 - p2) + width = 0.55 + 0.138583452742599 = 0.688583453
The 95% confidence interval is [0.4114, 0.6886]
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