A bond proposal for school construction will be submitted to the voters at the next municipal election. A major portion of the money derived from this bond issue will be used to build schools in a rapidly developing section of the city, and the remainder will be used to renovate and update school buildings in the rest of the city. To assess the viability of the bond proposal, a random sample of n = 50 residents in the developing section and n = 100 residents from the other parts of the city were asked whether they plan to vote for the proposal. The results are tabulated in Table 8.6.

1. Estimate the difference in the true proportions favouring the bond proposal with a 99% confidence interval. 2. If both samples were pooled into one sample of size n = 150, with 103 in favour of the proposal, provide a point estimate of the proportion of city residents who will vote for the bond proposal. What is the margin of error?

Sample Values for Opinion on Bond Proposal Developing Section Rest of the City Sample size 50 Number favouring proposal Proportion favouring proposal 38 0.76 100 65 0.65