A survey of 436 workers showed that 192 of them said that it was seriously unethical to monitor employee e-mail. When 121 senior-level bosses were surveyed, 40 said that it was seriously unethical to monitor employee e-mail. Find 99% confidence interval to test the claim that for those saying that monitoring e-mail is seriously unethical, the proportion of employees and the proportion of bosses are different.

Answer :

Answer:

99% confidence interval for the difference in the proportion of employees and the proportion of bosses who says that monitoring e-mail is seriously unethical is [-0.016 , 0.236].

Step-by-step explanation:

We are given that a survey of 436 workers showed that 192 of them said that it was seriously unethical to monitor employee e-mail.

When 121 senior-level bosses were surveyed, 40 said that it was seriously unethical to monitor employee e-mail.

Firstly, the Pivotal quantity for 99% confidence interval for the difference in population proportion is given by;

                          P.Q. =  [tex]\frac{(\hat p_1-\hat p_2)-(p_1-p_2)}{\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex]  ~ N(0,1)

where, [tex]\hat p_1[/tex] = sample proportion of employees who say that monitoring e-mail is seriously unethical = [tex]\frac{192}{436}[/tex] = 0.44

[tex]\hat p_2[/tex] = sample proportion of senior-level bosses who say that monitoring e-mail is seriously unethical = [tex]\frac{40}{121}[/tex] = 0.33

[tex]n_1[/tex] = sample of employees = 436

[tex]n_2[/tex] = sample of senior-level bosses = 121

Here for constructing 99% confidence interval we have used Two-sample z test for proportions.

So, 99% confidence interval for the difference in proportion, ([tex]p_1-p_2[/tex]) is ;

P(-2.58 < N(0,1) < 2.58) = 0.99  {As the critical value of z at 0.5% level

                                                of significance are -2.58 & 2.58}  

P(-2.58 < [tex]\frac{(\hat p_1-\hat p_2)-(p_1-p_2)}{\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] < 2.58) = 0.99

P( [tex]-2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] < [tex]{(\hat p_1-\hat p_2)-(p_1-p_2)}[/tex] < [tex]2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] ) = 0.99

P( [tex](\hat p_1-\hat p_2)-2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] < ([tex]p_1-p_2[/tex]) < [tex](\hat p_1-\hat p_2)+2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] ) = 0.99

99% confidence interval for ([tex]p_1-p_2[/tex]) =

[[tex](\hat p_1-\hat p_2)-2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex] , [tex](\hat p_1-\hat p_2)+2.58 \times {\sqrt{\frac{\hat p_1(1-\hat p_1)}{n_1}+\frac{\hat p_2(1-\hat p_2)}{n_2} } }[/tex]]

 = [ [tex](0.44-0.33)-2.58 \times {\sqrt{\frac{0.44(1-0.44)}{436}+\frac{0.33(1-0.33)}{121} } }[/tex] , [tex](0.44-0.33)+2.58 \times {\sqrt{\frac{0.44(1-0.44)}{436}+\frac{0.33(1-0.33)}{121} } }[/tex] ]

 = [-0.016 , 0.236]

Therefore, 99% confidence interval for the difference in the proportion of employees and the proportion of bosses who says that monitoring e-mail is seriously unethical is [-0.016 , 0.236].

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