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91Ó°ÊÓ

According to a Bureau of Labor Statistics release of February \(20,2015,79 \%\) of American children under age 18 lived with at least one other sibling in 2014 . Suppose that in a recent sample of 2000 American children under age 18,1620 were living with at least one other sibling. a. Using the critical-value approach and \(\alpha=.05\), test if the current percentage of all American children under age 18 who live with at least one other sibling is different from \(79 \%\). b. How do you explain the Type I error in part a? What is the probability of making this error in part a? c. Calculate the \(p\) -value for the test of part a. What is your conclusion if \(\alpha=.05 ?\)

Short Answer

Expert verified
The exact values of test statistic and p-value would depend on the computation, but the approach outlined above would yield the correct answers. To interpret the results, if we reject the null hypothesis, it means that there is significant evidence that the actual proportion of children living with siblings is not 79%. Otherwise, we conclude that there is insufficient evidence to suggest that the proportion is different from 79%.

Step by step solution

01

Define the null and alternative hypothesis

The null hypothesis \(H_0\) is that the proportion of children living with at least one sibling is 0.79 (or 79%), i.e., \(p = 0.79\). The alternative hypothesis \(H_1\) is that the proportion \(p\) is not equal to 0.79, i.e., \(p \neq 0.79\).
02

Use the sample details to calculate the test statistic

The sample proportion is calculated by dividing the number of children observed living with at least one sibling by the total number of sampled children. In this case, it means \(\hat{p} =\frac{1620}{2000}= 0.81\). Now you calculate the test statistic using the formula: \(z=\frac{\hat{p}-p}{\sqrt{(p(1-p))/n}} = \frac{0.81-0.79}{\sqrt{(0.79*0.21)/2000}} \).
03

Determine the critical value and make a decision

Since the problem asked for a significance level of 0.05, and it's a two-tailed test (as the proportion can be either more or less than 0.79), the critical values from the standard normal table are -1.96 and +1.96. If the test statistic falls in the critical region (i.e., if it is less than -1.96 or greater than +1.96), we reject the null hypothesis.
04

Define Type I error and calculate its probability

A Type I error occurs when a true null hypothesis is rejected. In this context, it would mean concluding that the proportion of children living with at least one other sibling is significantly different from 79% when in reality it is not. The probability of making Type I error is denoted by \(\alpha\), so in this case it is 0.05.
05

Calculate the p-value

The p-value is the probability that, if the null hypothesis is true, we would get a test statistic as extreme or more extreme than what was actually observed. Calculate it using a standard normal distribution table or a software/tool capable of doing so.
06

Make a conclusion

If the p-value is less than or equal to the significance level (0.05 in this case), we reject the null hypothesis. Otherwise, we fail to reject it.

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Key Concepts

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

Null Hypothesis
The null hypothesis is a fundamental concept in hypothesis testing. It represents the default position that there is no effect or no difference. In our exercise, the null hypothesis \(H_0\) is that the proportion \(p\) of American children under 18 living with at least one sibling is 0.79 (or 79%). This hypothesis assumes there has been no change since the statistics release, and the observed results are attributed to sampling variation. When formulating a null hypothesis, it's important to state it clearly and precisely, as it forms the basis for the statistical test.
The purpose of the null hypothesis is to provide a clear focus for your testing by setting a single, measurable claim about the population parameter. Throughout the testing process, the goal is to gather evidence to see if we should reject this claim or not.
Alternative Hypothesis
The alternative hypothesis is key in hypothesis testing as it directly challenges the null hypothesis. It's the statement that researchers think might be true or are hoping to prove. In the example provided, the alternative hypothesis \(H_1\) is that the proportion \(p\) of American children under 18 living with at least one sibling is different from 0.79. This hypothesis suggests a change or difference exists compared to the statement in the null hypothesis.
The alternative hypothesis is critical because it guides the direction of the test. If you were to reject the null hypothesis based on your results, the assumption would be that the alternative hypothesis holds true. It offers a more persuasive claim to validate with data, indicating this proportion is different than what has been historically reported.
Type I Error
A Type I error occurs in hypothesis testing when the null hypothesis is incorrectly rejected while it is actually true. This kind of error is also known as a "false positive." In the context of our exercise, a Type I error would occur if we concluded that the percentage of American children under 18 living with at least one sibling is indeed different from 79% when, in fact, it remains at 79%.
The probability of making a Type I error is represented by \(\alpha\), which is the significance level of the test. For this problem, \(\alpha = 0.05\), meaning there is a 5% risk of incorrectly rejecting the null hypothesis. Understanding Type I error is crucial because it helps gauge the reliability of the test conclusions. High significance levels can lead to more willing acceptance of a null hypothesis, but increase the probability of a Type I error.
P-value
The p-value measures the probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is true. In other words, it helps you determine the significance of your results. If the p-value is low, it suggests that the observed data is unlikely under the null hypothesis, prompting reconsideration of the null hypothesis.
In our exercise, calculating the p-value involves finding how probable it is to get a sample proportion of 0.81 (or more extreme) assuming the true population proportion is 0.79. A common decision rule is if the p-value is less than or equal to the significance level, \(\alpha\), you reject the null hypothesis. For \(\alpha=0.05\), a p-value under 0.05 suggests sufficient evidence to reject \(H_0\). This aids researchers in gauging the strength of their statistical evidence.
Critical-value Approach
The critical-value approach is a traditional method to test hypotheses. It uses a threshold (or critical value) based on the chosen significance level. If your test statistic exceeds this threshold, you reject the null hypothesis. For a two-tailed test with \(\alpha = 0.05\), the critical values are -1.96 and +1.96.
When using this approach, you first calculate the test statistic, then compare it to the critical values. If the test statistic exceeds these bounds, it suggests the sample data differs significantly from the null hypothesis, warranting rejection of \(H_0\). This approach offers a clear "yes" or "no" decision about the null hypothesis, making it easier to interpret than some probabilistic methods like the p-value."

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Most popular questions from this chapter

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