SOLUTION: Based on historical information, it is assumed that no more than 35%
of aggregate household income is spent on food. A researcher believes
that this proportion is now lower wit
Algebra.Com
Question 918897: Based on historical information, it is assumed that no more than 35%
of aggregate household income is spent on food. A researcher believes
that this proportion is now lower with increase in real wages. A study of
82 persons show that 37 spend less than 35%, is there reason at the
5% significance level to believe that the proportion is now lower?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Based on historical information, it is assumed that no more than 35%
of aggregate household income is spent on food. A researcher believes
that this proportion is now lower with increase in real wages. A study of
82 persons show that 37 spend less than 35%, is there reason at the
5% significance level to believe that the proportion is now lower?
-------------------
Ho: p >= 0.35
Ha: p < 0.35 (claim)
---------------
p-hat = 37/82 = 0.82
test stat:: z(0.82) = (0.82-0.35)/sqrt[0.35*0.65/82] = 15.56 (that's enormous)
---
p-value = p(z > 15.56) = 0
----
Conclusion:: Since the p-value is less than 5%, reject Ho.
The test results support the claim.
Cheers,
Stan H.
\-------------------
RELATED QUESTIONS
A magazine reported that the mean annual household income of its readers is $120,000.... (answered by oscargut)
A woman earns $2500 per month and budgets $400 per month for food. What percent of... (answered by Benwolf14)
a woman makes $2000 a month and she spends $360 on food. what percent of her monthly... (answered by cool12)
A political polling organization wants to estimate the proportion of independent voters... (answered by Boreal)
A woman earns $2700 per month and budgets $459 per month on food. What % of her m8nthly... (answered by nerdybill)
Hi
25percent of my income is given to my parents. The rest is on transport and... (answered by Boreal)
A woman earns $2300 a month and budgets $391 for food. What percent of her monthly income (answered by MathLover1,MathTherapy,ikleyn)
a woman earns $2700 per month and budgets $513 for food. what percent of her monthly... (answered by lynnlo,lenny460,ralhp09)
a woman earns 2300 per month and budgets 299 per month for food what percent of her... (answered by macston)