An economist believed that the proportion of individuals who invest in tech stoc

Question

An economist believed that the proportion of individuals who invest in tech stocks is influenced by educational background. He hypothesized that individuals with a science background are more likely to invest in tech stocks than those with a background in another academic domain (i.e. arts, education, business, etc….). To test his hypothesis he surveyed 2000 individuals split evenly over two groups, those with a science background and those with any other background. He calculated the appropriate test statistic, and determined that the probability of obtaining it is .09 (not significant). He also decided to calculate a confidence interval and obtained confidence limits between -.010 and .020. What was the standard error of his study?

Explanation / Answer

here margin of errror E =(upper limit -lower limit)/2 =(0.020-(-0.010))/2 =0.015

for 0.09 level ; critical z =1.34

hence std error of this study =margin of error/z =0.015/1.34 =0.0112

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