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Comparisons Involving Proportions and a Test of Independence

Does age make a difference in the amount of savings a worker feels is needed to be secure at retirement?

A study by CommSciences for Transamerica Asset Management found that 0.24 of workers in the 25-33 age category feel that $250,000 to $500,000 is enough to be secure at retirement. In the 34-52 age category already 0.35 of the workers feel that this is enough.

Suppose 210 workers in the 25-33 age category and 176 workers in the 34-52 age category were involved in this study.

Use these data to construct a 90% confidence interval to estimate the difference in population proportions on this question.

Solution Summary

Does age make a difference in the amount of savings a worker feels is needed to be secure at retirement?

A study by CommSciences for Transamerica Asset Management found that 0.24 of workers in the 25-33 age category feel that $250,000 to $500,000 is enough to be secure at retirement. In the 34-52 age category already 0.35 of the workers feel that this is enough.

Suppose 210 workers in the 25-33 age category and 176 workers in the 34-52 age category were involved in this study.

Use these data to construct a 90% confidence interval to estimate the difference in population proportions on this question.

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