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Confidence Interval for Difference Between Proportions

Confidence Interval for Difference Between Proportions




Tips about Confidence Interval for the differnace between Proportions:



Definations

  • Proportion: The proportion is the fraction of the total that has a particular attribute, often denoted as 𝑝.
  • Difference between Proportions: The difference between proportions compares the proportion of a characteristic in two different populations or groups.
  • Confidence Interval (CI): A range of values that is likely to contain the true population parameter (in this case, the difference between proportions) with a specified level of confidence, often 90%, 95%, and 99%.


General Steps

  • Define the Sample Proportions::
    Sample Proportion Formula

    \[ \hat{p}_1 = \frac{x_1}{n_1}, \] where: \(\hat{p}_1\) is the sample proportion \(x_1\) is the number of successes in the sample \(n_1\) is the sample size

    \[ \hat{p}_2 = \frac{x_2}{n_2}, \] where: \(\hat{p}_2\) is the sample proportion \(x_2\) is the number of successes in the sample \(n_2\) is the sample size

  • Compute the Standard Error of the Difference (\(δ_{\hat{p}_1 - \hat{p}_2}\)):
    Standard Error of the Difference in Proportions

    To compute the standard error of the difference in proportions, use the following formula:

    \[ δ_{\hat{p}_1 - \hat{p}_2} = \sqrt{\frac{\hat{p}_1 (1 - \hat{p}_1)}{n_1} + \frac{\hat{p}_2 (1 - \hat{p}_2)}{n_2}} \]

  • Determine the \(z_{\alpha/2}\) for the Desired Confidence Level:
    Confidence Levels and zα/2 Values

    In the table below, I’ve listed common confidence levels (90%, 95%, 99%) along with their corresponding \(z_{\alpha/2}\):

    Confidence Level (1-α) \(z_{\alpha/2}\)
    90% 1.645
    95% 1.960
    99% 2.576
    N/A

    Feel free to provide a confidence level in percentage, and I’ll calculate the corresponding \(z_{\alpha/2}\) for you!

  • Calculate the Margin of Error (\(M_{ε}\)):
    The value margin error determines the widith of the confidence interval.
    \[M_{ε} = (z_{\alpha/2}) * (δ_{\hat{p}_1 - \hat{p}_2})\]
  • Construct the Confidence Interval:
    \[ CI = (\hat{p}_1 - \hat{p}_2) \pm M_{ε} \] \[ LCI = (\hat{p}_1 - \hat{p}_2) - M_{ε} \] \[ UCI = (\hat{p}_1 - \hat{p}_2) + M_{ε} \]
  • Interpretation:
    Here, I provide you a deafult style for interpreting the result of the confidence interval.
    We are + (1-α)% confident that the + true difference in proportions lies between + [LCL and UCL].

    For example: "We are 95% confident that the true difference in proportions lies between -0.3042 and 0.1042."


Common Errors

Based on my experience with previous students, I’ve noticed some common mistakes related to this confidence intervals. It’s essential to exercise caution while performing these calculations. Here are some key points to keep in mind:...
  • Regarding the criteria for normalization; it’s common for students to overlook the need to verify that the sampling distribution for the difference between proportions follows a normal distribution before calculating the z-value.

    To confirm the normality assumption, ensure the following conditions are met;
    \[ n_1 \hat{p}_1 \geq 5 \] \[ n_1 (1 - \hat{p}_1) \geq 5 \] \[ n_2 \hat{p}_2 \geq 5 \] \[ n_2 (1 - \hat{p}_2) \geq 5 \]
  • Confusion Between Proportion and Raw Data: : Mistaking the number of successes for the proportion (e.g., using \(x_1\)insted \(\hat{p}\)) .
  • Incorrect Z-Value (\(z_{\alpha/2}\)) :Using the wrong Z-value for the desired confidence level. (eg., using 1.645 for 95%)



Additional Tips

  • Double-Check Calculations: Especially the standard error and the margin of error, as small mistakes can significantly affect the confidence interval.
  • Use Technology: Statistical software or even spreadsheet tools can help in accurately computing confidence intervals.
  • Understand the Context: Knowing what the confidence interval represents in the context of your data is crucial for correct interpretation

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