Hypothesis testing for two proportions
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Black cats are considered bad luck in Canada but good luck in Japan. A random sample of households with cats was drawn in both countries to see if their owners have at least one black cat. We wish to test if Japan has a different proportion of pet owners with black cats than Canada. It turns out that the 95% confidence interval for the difference in proportions contains “0”.
(a) What is your conclusion at the 5% level of significance?
(b) Will your conclusion change if we perform a 99% confidence interval instead?