For two independent populations, \(p_1=0.70\), \(p_2=0.50\), \(n_1=120\), and \(n_2=180\). A student computes the standard deviation of \(\hat p_1-\hat p_2\) by first pooling the population proportions and then using the pooled value in both variance terms. Explain why that method is inappropriate for the ordinary sampling distribution, then calculate the correct standard deviation and the student's pooled standard deviation. Round both to four decimal places.
Hints
- Ask what assumption pooling represents and whether that assumption is part of this sampling-distribution problem.
- For an ordinary difference-in-proportions sampling distribution, each population contributes its own variance term.
- Compare the two numerical spreads only after establishing which model each formula represents.
Solution
1. The ordinary sampling distribution uses the actual population proportions separately: \(\sigma=\sqrt{\frac{0.70(0.30)}{120}+\frac{0.50(0.50)}{180}}\approx0.0560\).
2. Pooling is tied to a hypothesis-test null model that assumes equal population proportions; no such equality is assumed here.
3. The pooled proportion would be \(\frac{120(0.70)+180(0.50)}{300}=0.58\).
4. The student's value is \(\sqrt{0.58(0.42)(\frac{1}{120}+\frac{1}{180})}\approx0.0582\).
5. The pooled calculation therefore changes the spread and is not the correct sampling-distribution standard deviation.
Answer
Pooling is inappropriate here. The correct standard deviation is approximately \(0.0560\); the pooled calculation gives approximately \(0.0582\).