Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year.

(p1 - p)/SQRT[p*(1-p)/n] = 2.58 where p1 is the sample proportion and p is 0.60. Using a Z table, Probability (Z >2.58) = 0.0049.

The above computation was based on 0.64 being the sample proportion using a sample size of 1000 from the population of all US Households. But what if those 1000 observations was the total population instead of being a sample? How will the answer change in that case? (Hint: check the revised Z formula)

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orchestra answered 2 years ago

Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year. a) Assuming...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year. a)...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year. a) Assuming...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year. a) Assuming...

Suppose that we wish to assess whether more than 60 percent ofall U.S. households in...

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year.a) Based on...

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Suppose that we wish to assess whether more than 60 percent of all U.S. households in...

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