A study was recently conducted at a major university to estimate the difference in the proportion of business school and non-business school graduates who go on to a higher degree programme within five years of graduation A random sample of 400 business school graduates showed that 75 had gone to graduate school, while in a random sample of 500 non-business graduates, 137 had done so. The standard error for the difference in the proportions of the two groups is
A) 0.0279
B) 0
C) 0.0008
D) 0.0865
E) 0.1875

Question

Quizplus · Accepted Answer

The standard error for the difference in proportions is calculated using the formula: SE = sqrt[(p1(1-p1)/n1) + (p2(1-p2)/n2)], where p1 and p2 are the sample proportions and n1 and n2 are the sample sizes. For business graduates, p1 = 75/400 = 0.1875, and for non-business graduates, p2 = 137/500 = 0.274. Plugging these into the formula gives SE ≈ 0.0279.

A Study Was Recently Conducted at a Major University to Estimate