Philip R. Cateora reports the results of an MTV-commissioned study of the lifestyles and spending habits of the 14-34 age group in six countries. The survey results are given in Table 10.7
a. As shown in Table 10.71 96 percent of the 14- to 34-year-olds surveyed in the United States had purchased soft drinks in the last three months, while 90 percent of the 14- to 34-year-olds surveyed in Australia had done the same. Assuming that these results were obtained from
TABLE 10.7
Results of an MTV-Commissioned Survey of the Lifestyles and Spending Habits of the 14-34 Age Group in Six Countries
Which of the Following Have You Purchased in the Past Three Months?

independent random samples of 500 respondents in each country, carry out a hypothesis test that tests the equality of the population proportions of 14- to 34-year-olds in the United States and in Australia who have purchased soft drinks in the last three months. Also1 calculate a 95 percent confidence interval for the difference between these two population µroµortions1 and use this interval to estimate the largest and smallest values that the difference between these proportions might be. Based on your confidence interval1 do you feel that this result has practical importance?
b. Again as shown in Table 10.71 40 percent of the 14- to 34-year-olds surveyed in Australia had purchased athletic footwear in the last three months1 while 54 percent of the 14- to 34-year-olds surveyed in Brazil had done the same. Assuming that these results were obtained from independent random samples of 500 respondents in each country, carry out a hypothesis test that tests the equality of the population proportions of 14- to 34-year-olds in Australia and in Brazil who have purchased athletic footwear in the last three months. Also, calculate a 95 percent confidence interval for the difference between these two population proportions1 and use this interval to estimate the largest and smallest values that the difference between these proportions might be. Based on your confidence interval1 do you feel that this result has practical importance?

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Percentage in United Percentage Percentage Percentage Percentage in United Percentage Product States Softdrinks 96% Fast food 94 Athletic 59 footwear Blue jeans 56 Beer* Cigarettes 24 in Australia 90% 94 40 in Brazil 93% 91 54 in Germany 83% 70 in Japan 91% 86 30 Kingdom 94% 85 49 39 50 45 46 38 42 57 39 46 60 57 40 30