1. The estimated proportion of rods from mill A that meet specifications is 0.88, with an uncertainty of approximately 0.032.
2. The estimated proportion of rods from mill B that meet specifications is 0.9, with an uncertainty of approximately 0.0245.
3. The estimated difference between the proportions is 0.02, with an uncertainty (standard error) of approximately 0.039.
How to estimate the proportion
To estimate the proportion of rods from mill A that meet specifications, divide the number of rods from mill A that meet specifications (88) by the total number of rods from mill A sampled (100):
Thus;
Proportion of rods from mill A that meet specifications
= 88/100
= 0.88
To find the uncertainty in the estimate, use the formula for the standard error of a proportion:
Standard error =
((p * (1 - p)) / n)
where p is the estimated proportion and n is the sample size.
Standard error for mill A =
((0.88 * (1 - 0.88)) / 100) ≈ 0.032
Therefore, the estimated proportion of rods from mill A that meet specifications is 0.88, with an uncertainty (standard error) of approximately 0.032.
Similarly, to estimate the proportion of rods from mill B that meet specifications, divide the number of rods from mill B that meet specifications (135) by the total number of rods from mill B sampled (150):
Proportion of rods from mill B that meet specifications
= 135/150
= 0.9
The uncertainty in the estimate can be calculated using the same formula:
Standard error for mill B =
((0.9 * (1 - 0.9)) / 150) ≈ 0.0245
Therefore, the estimated proportion of rods from mill B that meet specifications is 0.9, with an uncertainty (standard error) of approximately 0.0245.
To estimate the difference between the proportions, we subtract the proportion of rods from mill B that meet specifications from the proportion of rods from mill A that meet specifications:
Difference in proportions = 0.9 - 0.88 = 0.02
The uncertainty in the difference can be calculated using the formula for the standard error of the difference between two proportions:
Standard error of difference =
)
Standard error of difference =
≈ 0.039
Therefore, the estimated difference between the proportions is 0.02, with an uncertainty (standard error) of approximately 0.039.