Question

Do the assignment in R/RStudio. Copy or compile your results into Word, write any explanations and turn in the hard copy.

You conduct a survey of New Yorkers. The survey uses a stratified sample of 100 employed college graduates and 100 employed high school graduates. Your survey concludes that 70% of college graduates are happy with their job compared to only 60% of high school graduates.

a. What is the standard error and margin of error of the estimate for college graduates?

b. What is the standard error and margin of error of the estimate for high school graduates?

c. What is the standard error and margin of error for the ten percentage point difference between the two groups?

d. I claim that the two groups are similar (the basic economic model of work/leisure implies nobody really likes working!). Can you reject this hypothesis?

Answer 1

a) Sample proportion of college graduates are happy with their job p₁ = 0.70

b)  Sample proportion of high school graduates are happy with their job p₂ = 0.60

c)

d)

H0: There is no significance difference between the proportion of two groups

H1: There is significance difference between the proportion of two groups

Let the los be alpha = 5%

Critical z: ±1.6449
P-Value: 0.1382

Here Z value is lies between Z critical values and P-value > alpha 0.10 so we accept H0

Thus we conclude that there is no significance difference between the proportion of two groups