Answer:
a) ![\hat p_1 -\hat p_2= 0.2-0.35= -0.15](https://tex.z-dn.net/?f=%5Chat%20p_1%20-%5Chat%20p_2%3D%200.2-0.35%3D%20-0.15)
b) ![ME= 2.58 \sqrt{\frac{0.2(1-0.2)}{60} +\frac{0.8(1-0.8)}{100}} =0.169](https://tex.z-dn.net/?f=%20ME%3D%202.58%20%5Csqrt%7B%5Cfrac%7B0.2%281-0.2%29%7D%7B60%7D%20%2B%5Cfrac%7B0.8%281-0.8%29%7D%7B100%7D%7D%20%3D0.169)
c)
And the 99% confidence interval would be given (-0.319;0.0185).
Step-by-step explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
represent the real population proportion 1
represent the estimated proportion 1
is the sample size required 1
represent the real population proportion for 2
represent the estimated proportion 2
is the sample size required for Brand B
represent the critical value for the margin of error
Solution to the problem
The population proportion have the following distribution
The confidence interval for the difference of two proportions would be given by this formula
Part a
The best estimate is given by:
![\hat p_1 -\hat p_2= 0.2-0.35= -0.15](https://tex.z-dn.net/?f=%5Chat%20p_1%20-%5Chat%20p_2%3D%200.2-0.35%3D%20-0.15)
Part b
For the 99% confidence interval the value of
and
, with that value we can find the quantile required for the interval in the normal standard distribution.
The margin of error is given by:
![ME= 2.58 \sqrt{\frac{0.2(1-0.2)}{60} +\frac{0.8(1-0.8)}{100}} =0.169](https://tex.z-dn.net/?f=%20ME%3D%202.58%20%5Csqrt%7B%5Cfrac%7B0.2%281-0.2%29%7D%7B60%7D%20%2B%5Cfrac%7B0.8%281-0.8%29%7D%7B100%7D%7D%20%3D0.169)
Part c
And replacing into the confidence interval formula we got:
And the 99% confidence interval would be given (-0.319;0.0185).