In: Statistics and Probability
In a random sample of 100 persons with low incomes, 100 persons with average incomes, and 100 persons with high incomes, there were, respectively, 40, 50, and 60 who love biking.
(a) Use the 0.05 level of significance to test the null hypothesis θ1 = θ2 = θ3 = 0.5 (that the proportion of persons loving biking is 50% for all three income groups) against the alternative hypothesis that the three θ’s are not all equal to 0.5. In carrying out your test, be sure to state your null and alternative hypothesis, compute the test statistic, and state your conclusions, both in terms of the hypotheses and in terms of the problem.
b) specify the approximation you used in part (a)