Tom Plans to Find A $95 \%$ Confidence Interval Estimate Of $\mathrm { p } 1$

question 61

Essay

Tom plans to find a $95 \%$ confidence interval estimate of $\mathrm { p } 1$ , the proportion of women who smoke, and a 95\% confidence interval estimate of $\mathrm { p } _ { 2 }$ , the proportion of men who smoke. He will reject the null hypothesis $\mathrm { H } _ { 0 } : \mathrm { p } _ { 1 } = \mathrm { p } _ { 2 }$ if there is no overlap between the two confidence intervals. Tim plans to find a $95 \%$ confidence interval estimate of $\mathrm { p } _ { 1 } - \mathrm { p } _ { 2 }$ , and will reject the null hypothesis $\mathrm { H } _ { 0 } : \mathrm { p } _ { 1 } = \mathrm { p } _ { 2 }$ if the confidence interval does not include 0 . Will Tom and Tim definitely reach the same conclusion? If not, who is more likely to conclude that there is a significant difference between the two population proportions?

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Definitions:

Perpetual Inventory System

An accounting method that records inventory purchases or sales in real-time through the use of computerized systems.

Invoice Payment

Invoice Payment refers to the process of paying off the amount owed for goods or services received, as documented by an invoice issued by the supplier or service provider.

Discount Period

The time period during which a payment can be made at a discounted rate before the full amount becomes due.

Credit for Returns

Refunds issued to customers or credits applied against customer accounts for returned goods or services.