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Your teacher brings two large bags of colored goldfish crackers to class. Bag 1 has 25% red crackers and Bag 2 has 35% red crackers. Using a paper cup, your teacher takes an SRS of 50 crackers from Bag 1 and a separate SRS of 40 crackers from Bag 2. Let p^1p^2\hat{p}_{1}-\hat{p}_{2} be the difference in the sample proportions of red crackers. What is the shape of the sampling distribution of p^1p^2?\hat{p}_{1}-\hat{p}_{2} ? Why?

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Given:

n1=Sample size=50n2=Sample size=40p1=25%=0.25p2=35%=0.35\begin{align*} n_1&=\text{Sample size}=50 \\ n_2&=\text{Sample size}=40 \\ p_1&=25\%=0.25 \\ p_2&=35\%=0.35 \end{align*}

It is safe to assume that the sampling distribution of p^1p^2\hat{p}_1-\hat{p}_2 is approximately normal if n1p110n_1p_1\geq 10, n1(1p1)10n_1(1-p_1)\geq 10, n2p210n_2p_2\geq 10 and n2(1p2)10n_2(1-p_2)\geq 10.

n1p1=50(0.25)=12.510n1(1p1)=50(10.25)=50(0.75)=37.510n2p2=40(0.35)=1410n2(1p2)=40(10.35)=40(0.65)=2610\begin{align*} n_1p_1&=50(0.25)=12.5\color{#4257b2}\geq 10 \\ n_1(1-p_1)&=50(1-0.25)=50(0.75)=37.5\color{#4257b2}\geq 10 \\ n_2p_2&=40(0.35)=14\color{#4257b2}\geq 10 \\ n_2(1-p_2)&=40(1-0.35)=40(0.65)=26\color{#4257b2}\geq 10 \end{align*}

We note that n1p110n_1p_1\geq 10, n1(1p1)10n_1(1-p_1)\geq 10, n2p210n_2p_2\geq 10 and n2(1p2)10n_2(1-p_2)\geq 10,which implies that the sampling distribution of p^1p^2\hat{p}_1-\hat{p}_2 is approximately normal.

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