Question

In: Statistics and Probability

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)

Solutions

Expert Solution


Related Solutions

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...
Suppose that U.S. interest rates are 4 percent more than rates in the EU. a. Would...
Suppose that U.S. interest rates are 4 percent more than rates in the EU. a. Would you expect the dollar to appreciate or depreciate against the euro, and by how much? b. If, contrary to your expectations, the forward and spot rates are the same, which direction would you expect financial capital to flow? Why?
Suppose that we wish to test whether the population mean of weights of male students at...
Suppose that we wish to test whether the population mean of weights of male students at a certain college to be larger than 68 kilograms. Consider α = 0.05 level of significance and assume normal population. We have a random sample with size 10, x = 70 and s^2 = 10. 1. Complete the test by finding out its critical region and draw your conclusion. 2. Complete the test by finding out its p-value and draw your conclusion. Is your...
Suppose that we wish to test whether the population mean of weights of male students at...
Suppose that we wish to test whether the population mean of weights of male students at a certain college to be larger than 68 kilograms. Consider α = 0.05 level of significance and assume normal population. We have a random sample with size 10, x = 70 and s^2 = 10. 1. Complete the test by finding out its critical region and draw your conclusion. 2. Complete the test by finding out its p-value and draw your conclusion. Is your...
You wish to test the claim that fewer than 33% of households in a certain city...
You wish to test the claim that fewer than 33% of households in a certain city own pets. [3 points] Give the null and alternate hypotheses. [2 points] Is the test right-tailed, left-tailed or two-tailed? The P-value was found to be 0.0673, Choose using a significance level of 5%: Reject the null hypothesis or Fail to reject the null hypothesis Give the conclusion about the claim in an English sentence in the context of the scenario. A person wants to...
In not more than a page,assess the process of conscience.
In not more than a page,assess the process of conscience.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT