In: Economics
Suppose in a survey of n = 400 students, 255 responded that they
prefer small
classes and 145 responded that they prefer large classes. Let p
denote the fraction
of all students who preferred small classes at the time of the
survey, and ^ p be the
fraction of survey respondents who preferred small classes. (Hint:
X is distributed
as a Bernoulli random variable)
1.Use the survey result to estimate p, and calculate the
standard error of your
estimator. (Hint: Notice that this is the same as estimating the
sample mean)
2.What is the p-value for the test H0 : p = 0:5 vs. H1 : p 6= 0:5?
Will you reject
the null at the 5% significance level?
3.Construct a 95% confidence interval for p.