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Question: Who owns iPods? Refer to Exercise I. Construct and interpret a 95% confidence interval for the difference between the population proportions. Explain how the confidence interval is consistent with the results of the test in Exercise II.

Exercise II: Who owns iPods? Refer to Exercise I. Carry out a significance test at the a = 0.05 level.

Exercise I: Who owns iPods? As part of the Pew Internet and American Life Project, researchers surveyed a random sample of 800 teens and a separate random sample of 400 young adults. For the teens, 79% said that they own an iPod or MP3 player. For the young adults, this figure was 67%. Do the data give convincing evidence of a difference in the proportions of all teens and young adults who would say that they own an iPod or MP3 player? State appropriate hypotheses for a test to answer this question. Define any parameters you use.

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