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An economist believes that the percentage of the TOWN A households with Internet

ID: 3229445 • Letter: A

Question

An economist believes that the percentage of the TOWN A households with Internet access is lower than the percentage of the TOWN B households with Internet access. He obtains a random sample of 800 Town A households and finds that 591 of them have Internet access. He obtains a random sample of 750 TOWN B households and finds that 639 of them have Internet access. Test the economist’s claim at the = 0.03.

Which of the following is the best to describe the test?

A. Two sample proportions, left-tailed, z-test.

B. Two sample proportions, two-tailed, z-test.

C. Two sample means, two-tailed, z-test.

D. Two sample means, left-tailed, t-test.

E. Two sample means, right-tailed, z-test.

What will be the test hypotheses?

A. H0: pA=pB vs H1: pA<pB

B. H0: µA<µB vs H1: µA=µB

C. H0: pA0 vs H1: pB=0

D. H0: pA=pB vs H1: pApB

E. H0: pA>pB vs H1: pA=pB

What is the critical value in the test?

A. -2.2570

B. -1.5046

C. -2.6331

D. -3.0093

E. -1.8808

What is the test statistic in the test?

A. -5.5149

B. -5.4949

C. -5.6149

D. -5.3949

E. -5.5049

What should we do about the hypotheses?

A. Do not reject the alternative hypothesis.

B. Accept both hypotheses.

C. Reject the null hypothesis.

D. Accept the null hypothesis.

E. Reject both hypotheses.

What is the research conclusion?

A. There is sufficient evidence to conclude that the mean of the TOWN A households with Internet access is lower than the mean of the TOWN B households with Internet access.

B. There is insufficient evidence to conclude that the mean of the TOWN A households with Internet access is lower than the mean of the TOWN B households with Internet access.

C. There is sufficient evidence to conclude that the percentage of the TOWN A households with Internet access is lower than the percentage of the TOWN B households with Internet access.

D. There is no sufficient evidence to conclude that the percentage of the TOWN A households with Internet access is not lower than the percentage of the TOWN B households with Internet access.

E. There is sufficient evidence to conclude that the percentage of the TOWN A households with Internet access is higher than the percentage of the TOWN B households with Internet access.

Compute the upper boundary of the 94% C.I. for the estimated proportion difference?

A. -0.0552

B. -0.0952

C. -0.0752

D. -0.1952

Explanation / Answer

The following are corrects

Which of the following is the best to describe the test?

A. Two sample proportions, left-tailed, z-test.

What will be the test hypotheses?

A. H0: pA=pB vs H1: pA<pB

What is the critical value in the test?

E. -1.8808

What is the test statistic in the test?

E. -5.5049

What should we do about the hypotheses?

C. Reject the null hypothesis.

What is the research conclusion?

C. There is sufficient evidence to conclude that the percentage of the TOWN A households with Internet access is lower than the percentage of the TOWN B households with Internet access.

Compute the upper boundary of the 94% C.I. for the estimated proportion difference?

C. -0.0752

Z Test for Differences in Two Proportions Data Hypothesized Difference 0 Level of Significance 0.03 Group 1 Number of Successes 591 Sample Size 800 Group 2 Number of Successes 639 Sample Size 750 Intermediate Calculations Group 1 Proportion 0.73875 Group 2 Proportion 0.852 Difference in Two Proportions -0.11325 Average Proportion 0.793548387 Z Test Statistic -5.5049 Lower-Tail Test Lower Critical Value -1.8808 p-Value 1.84653E-08 Reject the null hypothesis Upper -0.0746
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