In: Economics
            A sample of 120 observations indicated that X1 is 77.
A second sample of 153 observations...
                
            A sample of 120 observations indicated that X1 is 77.
A second sample of 153 observations indicated that X2 is
89. Conduct a z-test of hypothesis about a difference in
population proportions using a 0.05 significance level.
  H0: p1 -
p2 = 0
  H1: p1 - p2 ≠
0
| a) | 
State the decision rule.
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is between -1.96 and 1.96. | 
 
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is less than 1.96. | 
 
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is greater than 1.96. | 
 
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is less than -1.64 or greater than 1.64. | 
 
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is between -1.64 and 1.64. | 
 
 | 
Reject H0 in
favour of H1 if the computed value of the
statistic is less than -1.96 or greater than 1.96. | 
 
 | 
None of the above. | 
 
 
 | 
b) Compute the pooled proportion.
For full marks your answer should be accurate to at least four
decimal places.
Pooled proportion: 0
c) What is the value of the test statistic?
For full marks your answer should be accurate to at least three
decimal places.
Test statistic: 0
| d) | 
What is your decision regarding H0?
 | 
There is sufficient evidence, at
the given significance level, to reject H0, and
accept H1 or at least there is not enough
evidence to reject H1. | 
 
 | 
There is insufficient evidence, at
the given significance level, to reject
H0. | 
 
 | 
There is insufficient evidence to
reject or not reject the null hypothesis. | 
 
 
 |