Question

Due Thursday Respond to the following in a minimum of 175 words: lected U.S. households ce last year, exceeds.60. Assurer le proportion of all U.S. households class Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds.60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year. a) Assuming that p equals.60 and the sample size is 1,000, what is the probability of observing a sample proportion that is at least .64? b) Based on your answer in part a, do you think more than 60 percent of all U.S. households in the income class bought life insurance last year? Explain. Die Vonds

Answer 1

Anstner P Value- the p-value is the area of the tail which is lying beyond the testistatistic given that the nulthypothesis is true. then, it is compared with the significance level it is less than significance level, which is generally assumed to be 0.05, then we can reject the null hypotesis i.e.qssumed value of the parameter. Answer with Explanations The proposation of all tis house holds in a posticular income closs who have douqht life insurance p= 0.060 The sample size, N= 1000 The number of people in the sample who have bought the life insurance - X=640 2-score - OP = VP (lap) Tin The standaad essere on v0.6061-,6

0.0155 Paqe.2 - Continen. the proportion of obsesviog a sample proportion of ed least 0.64 Plô20-640) = P(-20.64-060 ) = P(x2 2:58) = 0.0049 <0.0500 6) As Plå 2 0.64) <0.05 so we bave sufficient evidence to conclude that more than 60% of all household on the income dass bought life Pnsurance last year.