Do people who work for non-profit organizations differ from those who work at for-profit companies when it comes to personal job satisfaction? Separate random samples were collected by a polling agency to investigate the difference. Data collected from 422 employees at non-profit organizations revealed that 377 of them were "highly satisfied." From the for-profit companies, 431 out 518 employees reported the same level of satisfaction. Find the standard error of the difference in sample proportions.

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Answer:

0.0223

Step-by-step explanation:

Given the following data x(1) = 377, n(1) = 422, x(2) = 431, n(2) = 518

The sample proportion is the number of success divided by the sample.

P(1) = x(1)/n(1) = 377/422 = 0.8934

P(2) = x(2)/n(2) = 431/518 = 0.8320

Formular for the standard error of the difference in sample proportions

S.E = √p(1)q(1)/n(1)+P(2)q(2)/n(2)

S.E = √p1(1-P1)/n1+P2(1-P2)/n2

By substitution we have that,

S.E = √0.8934(1-0.8934)/422+0.8320(1-0.8320)/518

S.E = 0.0223

The standard error will be "0.0223".

Given values:

  • [tex]x(1) = 377[/tex]
  • [tex]x(2) = 431[/tex]
  • [tex]n(1) = 422[/tex]
  • [tex]n(2) = 518[/tex]

The sample proportion will be:

→ [tex]P(1) = \frac{x(1)}{n(1)}[/tex]

           [tex]= \frac{377}{422}[/tex]

           [tex]= 0.8934[/tex]

→ [tex]P(2) = \frac{x(2)}{n(2)}[/tex]

           [tex]= \frac{431}{518}[/tex]

           [tex]= 0.8320[/tex]

hence,

The standard error will be:

→ [tex]S.E = \sqrt{\frac{P(1)q(1)}{n(1)} +\frac{P(2)q(2)}{n(2)} }[/tex]

By substituting the values, we get

         [tex]= \sqrt{\frac{P(1)(1-P(1))}{n(1)} +\frac{P(2)(1-P(2))}{n(2} }[/tex]

         [tex]= \sqrt{\frac{0.8934(1-0.8934)}{422} +\frac{0.8320(1-0.8320)}{518} }[/tex]        

         [tex]= 0.0223[/tex]

Thus the solution above is right.

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