Question

1. According to Stats Canada, 15% of Canadians in 2015 were considered "low income". A researcher believes that number has changed since that time. A large random sample of Canadians is selected to test the researcher's claim.

a. Determine what population parameter is being tested:

i) μ  

ii) p

iii) ρ

b. Determine if the alternative hypothesis is a left-tailed, right-tailed, or two-tailed test:

i) < : left-tailed

ii) > : right-tailed

iii) ≠ : two-tailed

Answer 1

Solution:

Given: According to Stats Canada, 15% of Canadians in 2015 were considered "low income".

That is proportion of Canadians in 2015 were considered "low income" = 15% = 0.15

We have to test if that number has changed since that time.

that is we have to test if proportion of Canadians in 2015 were considered "low income" is different from 0.15.

Part a)  Determine what population parameter is being tested:

Since we are testing for population proportion, thus population parameter is p.

thus correct answer is: ii) p

is used for testing population mean and is used to test population correlation, thus both are incorrect for this problem,

Part b) Determine if the alternative hypothesis is a left-tailed, right-tailed, or two-tailed test:

Since hypothesis statement is non-directional , this is two tailed test.

thus correct answer is: iii) ≠ : two-tailed