For problem 8–55, give a 95% confidence interval for the difference in proportion of theaters nationwide where one movie will be preferred over the other. Is the point 0 contained in the interval?...

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Answered Same DayDec 25, 2021

Answer To: For problem 8–55, give a 95% confidence interval for the difference in proportion of theaters...

Robert answered on Dec 25 2021
129 Votes
If CI for difference of two parameters contains value zero, it is plausible that the
two parameters
are equal.
It is plausible that the success rate is equal for both cinema halls.
95% CI for p1 − p2
x1 = 60, n1 = 80, x2 = 65, n2 = 100
p̂1 =
60
80 = 0.75,
p̂2 =
65
100 = 0.65
(p̂1 − p̂2) = (0.75 − 0.65) = 0.1
SEp1−p2 =

p̂1(1 − p̂1)
n1
+ p̂2(1 − p̂2)
n2
=

0.75(0.25)
80...
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