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91Ó°ÊÓ

A number of initiatives on the topic of legalized gambling have appeared on state ballots. Suppose that a political candidate has decided to support legalization of casino gambling if he is convinced that more than twothirds of U.S. adults approve of casino gambling. Suppose that 1523 adults (selected at random from households with telephones) were asked whether they approved of casino gambling. The number in the sample who approved was \(1035 .\) Does the sample provide convincing evidence that more than two-thirds approve?

Short Answer

Expert verified
No, the sample does not provide convincing evidence that more than two-thirds of U.S adults approve of casino gambling.

Step by step solution

01

Define the Hypotheses

The null hypothesis \( H_0 \) is that the proportion of U.S adults who approve of casino gambling, denoted \( p \), is equal to two-thirds, i.e., \( p \leq 2/3 \). The alternative hypothesis \( H_1 \) is that more than two-thirds of U.S adults approve of casino gambling, i.e., \( p > 2/3 \).
02

Calculate the Sample Proportion

The sample proportion \(\hat{p}\) is the number of adults who approve of casino gambling divided by the total number of adults in the sample. So, \(\hat{p} = 1035 / 1523 = 0.6797 \) or \(67.97\% \).
03

Conduct the Hypothesis Test

Now, we need to see if the sample data provide enough evidence to reject the null hypothesis. We calculate the test statistic which is \(Z = (\hat{p} - p_0) / \sqrt{(p_0*(1-p_0)/n)} \), where \( p_0 \) is the proportion under the null hypothesis, \(\hat{p}\) is the sample proportion, and \( n \) is the sample size. Here, \( p_0 = 2/3 = 0.67 \), \( \hat{p} = 67.97\% = 0.6797 \), and \( n = 1523 \). So, \(Z = (0.6797 - 0.67) / \sqrt{(0.67*(1-0.67)/1523)} = 1.16 \)
04

Determine the P-value and Make the Decision

The P-value is the probability of observing a sample proportion as extreme as the one measured in the sample or more extreme, given that the null hypothesis is true. Since this is a one-tailed test to the right, the P-value is the tail-area to the right of \(Z = 1.16\) in a standard Normal distribution, which is \(P(Z > 1.16) = 0.1230\). The P-value is larger than the significance level of 0.05, so we fail to reject the null hypothesis. Thus, there is insufficient evidence to conclude that the proportion of U.S adults who approve casino gambling is more than two-thirds.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Null Hypothesis
In hypothesis testing, the null hypothesis, denoted as \( H_0 \), is a statement that assumes no effect or no difference. It's a starting point stating that nothing unusual will happen and is often contrary to our belief or research prediction.

In this case, the null hypothesis is that the proportion of U.S adults who approve of casino gambling is equal to two-thirds (\( p \leq 2/3 \)). The reason it's set up this way is that null hypotheses generally include an "equals" part to provide a baseline against which the real-world sample data are tested. So, our \( H_0 \) is that the true approval rate is not more than the baseline two-thirds proportion.

Testing a null hypothesis starts by assuming it is true. After performing calculations and statistical tests, we aim to see if there is enough evidence in the sample to reject this assumption in favor of the alternative hypothesis (\( H_1 \)), which claims more than two-thirds approve.
Sample Proportion
The sample proportion, denoted as \( \hat{p} \), is a statistic that estimates the proportion of a specified characteristic within a sample. It's like a mini-preview of the whole population's opinion.

In the exercise, the sample proportion represents the fraction of adults in the chosen sample who approve of casino gambling. Here, we take the number of approvals (\(1035\)) and divide it by the total sample size (\(1523\)), giving us a sample proportion \(\hat{p} = 1035 / 1523 = 0.6797\) or \(67.97\%\).

Calculating the sample proportion helps us understand what the collected sample tells us about the larger population. When well-chosen and large enough, a sample can accurately reflect the population’s sentiment.
P-value
The P-value in hypothesis testing quantifies the probability of obtaining a sample result at least as extreme as the one observed, assuming the null hypothesis is true.

In simpler terms, it's a measure that helps us understand how surprising or "unlikely" our sample data is under the null hypothesis. If it is very low, it suggests that what we've observed is quite unusual under the null assumption, nudging us towards questioning the null hypothesis validity.

For the example at hand, with our test statistic \(Z = 1.16\), we find a corresponding P-value of \(P(Z > 1.16) = 0.1230\). Since this P-value is greater than the typical significance level of \(0.05\), we don't have sufficient evidence to reject the null hypothesis. In essence, the observed sample isn't convincingly distinct from what the null hypothesis would predict.

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Most popular questions from this chapter

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