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In: Statistics and Probability

Question 3 It has been found that 50.3% of Malaysian households own stocks and mutual funds....

Question 3
It has been found that 50.3% of Malaysian households own stocks and mutual funds. A random sample of 300 heads of households indicated that 171 owned some type of stock. Use α= 0.05 to test the claim that there is a difference in the proportion of Malaysian households who own stocks and mutual funds.

i. Identify the claim and state the H0 and H1.        (1 Mark) ii. Find the critical value.                   (1 Mark) iii. Calculate the test statistic.      iv. Make a decision to reject or fail to reject the H0.                   (1 Mark) v. Interpret the decision.                               (1 Mark)


Solutions

Expert Solution

Let p denotes the true proportion of Malaysian households who own stocks and mutual funds.

There is sufficient evidence to support the claim that there is a difference in the proportion of Malaysian households who own stocks and mutual funds.

orchestra answered 1 year ago
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