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Literacy Refer to Exercise 2.

a. Find the probability that the proportion of graduates who pass the test is at most 0.20higher than the proportion of dropouts who pass, assuming that the researcher鈥檚 report is correct.

b. Suppose that the difference (Graduate 鈥 Dropout) in the sample proportions who pass the test is exactly 0.20. Based on your result in part (a), would this give you reason to doubt the researcher鈥檚 claim? Explain your reasoning.

Short Answer

Expert verified

a. P(z<-2.61)=0.00453

b. Due to small value of probability, there is reason to doubt company's claim.

Step by step solution

01

Given Information

It is given that =0.40

=0.07745

p^G-p^D=0.20

02

Calculation of Probability

Using z=x-

=0.20-0.400.07745-2.61

Hence, P(z<-2.61)=0.00453

=0.45%

03

Reason to Doubt Company's Claim

As we have calculated P(z<-2.61)=0.00453. Is is very small.

There is reason to doubt company's claim.

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