SOLUTION: A study conducted by Ariel Mutual Funds and Charles Schwab Corporation surveyed 500 African American with an annual income above $50,000 and 500 white Americans with an annual inco

Question 168777: A study conducted by Ariel Mutual Funds and Charles Schwab Corporation surveyed 500 African American with an annual income above $50,000 and 500 white Americans with an annual income above $50,000. The results indicated that 74% of the African Americans and 84% of the whites owned stocks (Cheryl Winokur Munk, �Stock-Ownership Race Gap Shrinks�. �The Wall Street Journal, June 13, 2002, B11). Is there a difference between the proportion of African American with an annual income above $50,000 who invest in stocks and the proportion of whites with income an annual income above $50,000 who invest in stocks at a 95% level of confidence?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
I used-a 2-proportion z-test on my TI calculator to get the following results:
Ho: p1 = p2
Ha: p1 is not equal to p2
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Test statistic: z(-.74-0.84) = -3.881922
p-value: 0.00010367
-------------------
Conclusion: Since the p-value is less than 5%, reject Ho.
p1 is not equal to p2
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Cheers,
Stan H.
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