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4.2.2 Intervals and tests for p1-p2

In the setting of confidence intervals, the sample proportions are used to verify the success-failure condition and also compute standard error, just as was the case with a single proportion.

Example 4.2.1

The way a question is phrased can influence a person’s response. For example, Pew Research Enter conducted a survey with the following question:3737www.people-press.org/2012/03/26/public-remains-split-on-health-care-bill-opposed-to-mandate/. Sample sizes for each polling group are approximate.

As you may know, by 2014 nearly all Americans will be required to have health insurance. [People who do not buy insurance will pay a penalty] while [People who cannot afford it will receive financial help from the government]. Do you approve or disapprove of this policy?

For each randomly sampled respondent, the statements in brackets were randomized: either they were kept in the order given above, or the two statements were reversed. Table 4.1 shows the results of this experiment. Create and interpret a 90% confidence interval of the difference in approval.

Sample size (ni) Approve law (%) Disapprove law (%) Other
‘‘people who cannot afford it will receive financial help from the government’’ is given second 771 47 49 3
‘‘people who do not buy it will pay a penalty’’ is given second 732 34 63 3
Table 4.1: Results for a Pew Research Enter poll where the ordering of two statements in a question regarding healthcare were randomized.

Answer. First the conditions must be verified. Because each group is a simple random sample from less than 10% of the population, the observations are independent, both within the samples and between the samples. The success-failure condition also holds for each sample. Because all conditions are met, the normal model can be used for the point estimate of the difference in support, where p1 corresponds to the original ordering and p2 to the reversed ordering:

p^1-p^2=0.47-0.34=0.13

Answer. The standard error may be computed from Equation (4.2) using the sample proportions:

SE0.47(1-0.47)771+0.34(1-0.34)732=0.025

For a 90% confidence interval, we use z=1.65:

point estimate±zSE0.13± 1.65×0.025(0.09,0.17)

We are 90% confident that the approval rating for the 2010 healthcare law changes between 9% and 17% due to the ordering of the two statements in the survey question. The Pew Research Enter reported that this modestly large difference suggests that the opinions of much of the public are still fluid on the health insurance mandate.