In: Statistics and Probability
Earthquakes are not uncommon in California. An article in the Annals of the Association of American Geographers investigated many factors that California residents consider when purchasing earthquake insurance. The survey revealed that only 133 of 337 randomly selected residences in Los Angeles County were protected by earthquake insurance. Test the hypothesis that less than 40% of the residents of Los Angeles County were protected by earthquake insurance. Use α =.10. a. What should our competing hypotheses be? Write in symbolic notation. b. Decide on the significance level, ? and find the critical value. c. Compute the test statistic. d. Make a decision about the null hypothesis and interpret the result of the hypothesis test. e. Write a conclusion for your hypothesis test