A recent literacy study reported that 86% of 1,004 randomly sampled Canadians re

Question

A recent literacy study reported that 86% of 1,004 randomly sampled Canadians read at least one book in the past year, compared to 81% of 1,009 randomly sampled Americans. Do these results indicate that the percentage of Americans who read at least one book in the past year is less than the percentage of Canadians?

Construct the appropriate hypothesis test, determine the P-value, and state your conclusion of the study.

Explanation / Answer

Given a=0.05, |Z(0.025)|=1.96 (check standard normal table) So 95% CI is (p1-p2)±Z*v[p1*(1-p1)/n1+p2*(1-p2)/n2] --> (0.86-0.81)±1.96*sqrt(0.86*(1-0.86)/1004+0.81*(1-0.81)/1009) --> ( 0.01764827, 0.08235173)

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