What the exam asks
Across multiple-choice and free-response questions, you must be ready to execute five specific tasks (Skills 2.C, 4.E, 3.E, 4.F, and 4.G):
- Identify the procedure by name and define the parameter in context, specifying the order of subtraction.
- Verify the randomization, 10%, and normality conditions using actual numbers from the prompt.
- Calculate the point estimate, standard error, margin of error, and confidence interval.
- Interpret both the confidence interval and the confidence level in context.
- Justify a claim about the two populations by checking whether (or another claimed difference) falls inside the interval.
Core ideas
Procedure and parameters
When estimating the difference between the proportions of successes in two distinct populations or treatment groups, the exact procedure name is a two-sample -interval for a difference between population proportions.
Define both parameters clearly as population values (or, in an experiment, as the true values for the treatments) and state the direction of subtraction: let represent the true difference in the proportion of [population 1] and [population 2] that have [characteristic of interest].
Conditions for inference
Before constructing the interval, check three conditions:
| Condition | Observational study (sampling) | Randomized experiment |
|---|---|---|
| Randomization | Two independent random samples are selected from the two populations. | Subjects are randomly assigned to the two treatment groups. |
| 10% condition | and (required when sampling without replacement). |
Formula, standard error, and margin of error
The confidence interval takes the general form :
- Point estimate: