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Refer to Exercise 52.

a. Construct and interpret a 95%confidence interval for the true proportion p of all first year students at the university who would identify being very well-off as an important personal goal. Assume that the conditions for inference are met.

b. Explain why the interval in part (a) provides more information than the test in Exercise 52.

Short Answer

Expert verified

Part a. 0.5943<p<0.7257

Part b. The confidence interval is not having 73%(or 0.73) which is the national value. Therefore there is sufficient proof to help the claim that the proportion is different (less) than the national value of73%.

Step by step solution

01

Part a. Step 1. Given information

n=200p=73%=0.73x=132

02

Part a. Step 2. Explanation

The sample proportion is

p^=xn=132200=0.66

For confidence level 11-=0.95, determine z/2=z0.025using table II (look up0.025in the table, the z-score is then they found z-score with opposite sign):

z/2=1.96

The margin of error is

E=z/2p^(1-p^)n=1.960.66(1-0.66)200=0.0657

The confidence interval then becomes:

p^-E<p<p^+E=0.66-0.0657<p<0.66+0.657=0.5943<p<0.7257

There is 95%confident that the true proportion of all first- year students at the university who would identify being very well-off as an important personal goal is between0.5943and0.7357.

03

Part b. Step 1. Given information

Result from exercise pat (a):

0.5943<p<0.7257

04

Part b. Step 1. Explanation

The confidence interval is not having 73%(or 0.73) which is the national value. Therefore there is sufficient proof to help the claim that the proportion is different (less) than the national value of73%.

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Most popular questions from this chapter

Paying high prices? A retailer entered into an exclusive agreement with a supplier who guaranteed to provide all products at competitive prices. To be sure the supplier honored the terms of the agreement, the retailer had an audit performed on a random sample of 25 invoices. The percent of purchases on each invoice for which an alternative supplier offered a lower price than the original supplier was recorded.17 For example, a data value

of 38 means that the price would be lower with a different supplier for 38% of the items on the invoice. A histogram and some numerical summaries of the data are shown here. The retailer would like to determine if there is convincing evidence that the mean percent of purchases for which an alternative supplier offered lower prices is greater than 50% in the population of this company鈥檚 invoices.

a. State appropriate hypotheses for the retailer鈥檚 test. Be sure to define your parameter.

b. Check if the conditions for performing the test in part (a) are met.

Members of the city council want to know if a majority of city residents supports a 1%increase in the sales tax to fund road repairs. To investigate, they survey a random sample of 300city residents and use the results to test the following hypotheses:

H0:p=0.50

Ha:p>0.50

where pis the proportion of all city residents who support a 1% increase in the sales tax to fund road repairs.

A Type I error in the context of this study occurs if the city council

a. finds convincing evidence that a majority of residents supports the tax increase, when in reality there isn鈥檛 convincing evidence that a majority supports the increase.

b. finds convincing evidence that a majority of residents supports the tax increase, when in reality at most 50%of city residents support the increase.

c. finds convincing evidence that a majority of residents supports the tax increase, when in reality more than 50%of city residents do support the increase.

d. does not find convincing evidence that a majority of residents supports the tax increase, when in reality more than 50%of city residents do support the increase.

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The student writes: 鈥淏ecause the P-value is large, we accept H0. The data provide convincing evidence that null hypothesis is true". Explain what is wrong with this conclusion.

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