Consider the following two groups of women: Group 1

Chapter 7, Problem 9E

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QUESTION:

PROBLEM 9E

Consider the following two groups of women: Group 1 consists of women who spend less than $500 annually on clothes; Group 2 comprises women who spend over $1000 annually on clothes. Let p1 and p2 equal the proportions of women in these two groups, respectively, who believe that clothes are too expensive. If 1009 out of a random sample of 1230 women from group 1 and 207 out of a random sample 340 from group 2 believe that clothes are too expensive,

(a) Give a point estimate of p1 − p2.

(b) Find an approximate 95% confidence interval for p1 − p2.

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QUESTION:

PROBLEM 9E

Consider the following two groups of women: Group 1 consists of women who spend less than $500 annually on clothes; Group 2 comprises women who spend over $1000 annually on clothes. Let p1 and p2 equal the proportions of women in these two groups, respectively, who believe that clothes are too expensive. If 1009 out of a random sample of 1230 women from group 1 and 207 out of a random sample 340 from group 2 believe that clothes are too expensive,

(a) Give a point estimate of p1 − p2.

(b) Find an approximate 95% confidence interval for p1 − p2.

ANSWER:

Step 1 of 4

Given,

We have to determine the following:

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