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Hypothesis Testing & Confidence Interval: Proportion

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(11.63) Dun & Bradstreet survey of business owners found that 23% of female business owners had a business home page compared to 16% of male business owners. Assume that file XR11063 contains the underlying data for each group, coded as 1 = no business home page and 2 = business home page. Using the 0.01 level of business home page. Using the 0.01 level of significance, evaluate the null hypothesis that female and male business owners across the country might really be equally likely to have a home page for their business. Identify and interpret the p-value for the test, then construct and interpret the 99% confidence interval for the difference between the population proportions.

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis and confidence interval for difference in population proportions. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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