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Women in the Labor Force. The Organization for Economic Cooperation and Development (OFCD) summarizes data on labor-force participation rates in O E C D in Figures. Independent simple random samples were taken of 300 U.S. women and 250 Canadian women. Of the U.S. women, 215 were found to be in the labor force; of the Canadian women. 186 were found to be in the labor force.

a. At the 5%significance level, do the data suggest that there is a difference between the labor-force participation rates of U.S. and Canadian women?

b. Find and interpret a 95% confidence interval for the difference between the labor-force participation rates of U.S. and Canadian women.

Short Answer

Expert verified

a) At5%significance level, the data do not provide sufficient evidence to conclude that there is a difference between the labor-force participation rates of U.S. and Canadian women.

b) There is 95%interval for the difference between the proportions is (-0.101675,0.0470087)

Step by step solution

01

Part(a) Step 1: Given Information

The given values are,

x1=215,n1=300,x2=186,n2=250,α=0.05

02

Part(a) Step 2: Explanation 

The null hypothesis

H0:p1=p2

The alternative hypothesis

Ha:p1>p2

Using MINITAB output.

MINITAB output: Test and CItwo proportions

From the MINITAB, the test statistic is -0.72and the p-value is 0.473.

p- value is more than the level of significance.

p- value (=0.473)<a(=0.05)

Using the rejection rule, it can be concluded that there is evidence to reject null hypothesis H0at alpha=0.005.

Therefore, at 5%significance level, the data do not provide sufficient evidence to conclude that there is a difference between the labor-force participation rates of U.S. and Canadian women.

03

Part(b) Step 1: Given Information

The given values are,

x1=215,n1=300,x2=186,n2=250,α=0.05

04

Part(b) Step 2: Explanation

Using MINITAB output.

Using the MINITAB output.

MINITAB output: Test and CI for two proportions.

From the MINITAB output, 95%confidence interval is (-0.101675,0.0470087). Therefore, there is 95%confidence interval for the difference between the proportion is (-0.101675,0.0470087)

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Most popular questions from this chapter

Margin of error=0.01

Confidence level=90%

Educated guess=0.9

(a) Obtain a sample size that will ensure a margin of error of at most the one specified (provided of course that the observed value of the sample proportion is further from 0.5that of the educated guess.

(b). Compare your answer to the corresponding one and explain the reason for the difference, if any.

Refer to the study on ordering vegetarian considered in Examples 11.8-11.10.

a. Without making a guess for the observed values of the sample proportions, find the common sample size that will ensure a margin of error of at most 0.01for a 90%confidence interval. Hint: Use Exercise 11.133.

b. Find a90%confidence interval for p1-p2if, for samples of the size determined in part (a), 38.3%of the men and 43.7%of the women sometimes order veg.

c. Determine the margin of error for the estimate in part (b), and compare it to the required margin of error specified in part (a).

Online Tax Returns. According to the Internal Revenue Service, among people entitled to tax refunds, those who file online receive their refunds twice as fast as paper filers. A study conducted by International Communications Research (ICR) of Media, Pennsylvania, found that 57% of those polled said that they are not worried about the privacy of their financial information when filing their tax returns online. The survey had a margin of error of plus or minus 3 percentage points (for a 0.95 confidence level). Use this information to determine a 95% confidence interval for the percentage of all people who are not worried about the privacy of their financial information when filing their tax returns online.

Margin of error =0.01

Confidence level=95%

Educated guess =0.3

(a) Obtain a sample size that will ensure a margin of error of at most the one specified (provided of course that the observed value of the sample proportion is further from 0.5that of the educated guess.

(b). Compare your answer to the corresponding one and explain the reason for the difference, if any.

Fill in the blanks.

a. The mean of all possible sample proportions is equal to the

b. For large samples, the possible sample proportions have approximately a distribution.

c. A rule of thumb for using a normal distribution to approximate the distribution of all possible sample proportions is that both and are or greater.

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