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Labor Union Support. Labor Day was created by the U.S. labor movement over 100years ago. It was subsequently adopted by most states as an official holiday. In a poll by Gallup, 1003randomly selected adults were asked whether they approve of labor unions; 65%said yes.

(a) In 1936, about 72%of Americans approved of labor unions. At the 5%significance level, do the data provide sufficient evidence to conclude that the percentage of Americans who approve of labor unions now has decreased since 1936?

(b) In 1963, roughly 67%of Americans approved of labor unions. At the 5%significance level, do the data provide sufficient evidence to conclude that the percentage of Americans who approve of labor unions now has decreased since 1963?

Short Answer

Expert verified

(a) At the 5%level, the test results are statistically significant.

As a result, the data is adequate to establish that the percentage of Americans who favour of labour unions has fallen since 1936.

(b) At the 5%level, the test results are not statistically significant.

As a result, the data does not support the conclusion that the number of Americans who favour of labour unions has fallen since 1963.

Step by step solution

01

Part (a) Step 1: Given information

The significance level is 5%

The number of randomly selected adults is n=1003

The number of Americans approved of labor unions isp0=0.72

The approval of labor unions p^=0.65

02

Part (a) Step 2: Explanation

Using the given data

Calculate the value of np0

np0=(1003)(0.72)

=722.16

Calculate the value of n1-p0

n1-p0=(1003)(1-0.72)

=280.84

Both the values are greater than 5. So one proportion z-test is appropriate to use.

The null hypothesis is

H0:p0=0.72

The alternate hypothesis is

H0:p0<0.72

The zvalue is calculated as

z=0.65-0.720.72(1-0.72)1003

=-0.070.014

=-4.937

When α=0.05the tail is left tailed

The critical value of zfrom the standard table is

z0.05=-1.645

The test statistic is in the negative range. As a result, the hypothesis H0is ruled out.

At the 5%level, the test results are statistically significant.

As a result, the data is adequate to establish that the percentage of Americans who favour of labour unions has fallen since 1936.

03

Part (b) Step 1: Given information

The significance level is5%

The number of randomly selected adults is1003

The number of Americans approved of labor unions isp0=0.72

The approval of labor unionsp^=0.65

04

Part (b) Step 2: Explanation

Calculate the value ofnp0

np0=(1003)(0.65)

=672.01

Calculate the value ofn1-p0

n1-p0=(1003)(1-0.67)

=330.99

Both the values are greater than 5. So one proportion z-test is appropriate to use.

The null hypothesis is

H0:p0=0.67

The alternate hypothesis is

H0:p0<0.67

The expression for zis

z=p^-p0p01-p0n

z=0.65-0.670.67(1-0.67)1003

=-0.020.015

=-1.347

Also, α=0.05, the tail is left tailed

The critical value of zfrom the standard table is

z0.05=-1.645

The test statistic is within acceptable bounds. As a result, the hypothesis H0is not ruled out.

At the 5%level, the test results are not statistically significant.

As a result, the data does not support the conclusion that the number of Americans who favour of labour unions has fallen since 1963.

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