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Multiple Choice
A researcher using a survey constructs a 90% confidence interval for a difference in two proportions. According to the data, they calculate p^1−p^2=0.09 with a margin of error of 0.07. Should they reject or fail to reject the claim that there is no difference in these two proportions?
A
Reject
B
Fail to reject
C
There is not enough information to answer the question.
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Verified step by step guidance
1
Step 1: Understand the claim being tested. The null hypothesis (H₀) is that there is no difference in the two proportions, meaning p₁ - p₂ = 0. The alternative hypothesis (H₁) is that there is a difference, meaning p₁ - p₂ ≠ 0.
Step 2: Recall that a confidence interval provides a range of plausible values for the true difference in proportions. If the value specified in the null hypothesis (0 in this case) is not within the confidence interval, we reject the null hypothesis.
Step 3: Use the given information to construct the confidence interval. The point estimate for the difference in proportions is p̂₁ - p̂₂ = 0.09, and the margin of error is 0.07. The confidence interval is calculated as: [ (p̂₁ - p̂₂) - margin of error, (p̂₁ - p̂₂) + margin of error ].
Step 4: Substitute the values into the formula: [ 0.09 - 0.07, 0.09 + 0.07 ]. This will give the lower and upper bounds of the confidence interval.
Step 5: Check if the value 0 (from the null hypothesis) lies within the confidence interval. If 0 is not within the interval, reject the null hypothesis. If 0 is within the interval, fail to reject the null hypothesis.