Question: Preemies. Among 242 Cleveland-area children born prematurely at low birth weights between 1977 and 1979, only 74% graduated from high school. Among a comparison group of 233 children of normal birth weight, 83% were high school graduates. ("Outcomes in Young Adulthood for Very-Low-Birth-Weight Infants," New England Journal of Medicine, 346, no. 3 [2002])
a) Create a 95% confidence interval for the difference in graduation rates between children of normal and children of very low birth weights. Be sure to check the appropriate assumptions and conditions.
b) Does this provide evidence that premature birth may be a risk factor for not finishing high school? Use your confidence interval to test an appropriate hypothesis.
c) Suppose your conclusion is incorrect. Which type of error did you make?