Question

21 You are reading a report that contains a hypothesis test you are interested in. The writer of the report writes that the p-value for the test you are interested in is 0.091, but does not tell you the value of the test statistic. From this information you can: a You cannot decide based on this limited information. You need to know the value of the test statistic b Not reject the hypothesis at a Probability of Type I error = 0.10, and not reject at a Probability of Type I error = 0.05 c Reject the hypothesis at a Probability of Type I error = 0.10, and reject at a Probability of Type I error = 0.05 d Reject the hypothesis at a Probability of Type I error -0.10, but not reject at a Probability of Type 1 error -0.05 22 According to the Census Bureau the sample proportion of American children without health insurance rose from 0.109 in 2005 to 0.117 in 2006. Using the Census data you test the hypothesis that the change in the population proportion of American children without health insurance is zero with a Probability of Type I error =0.05. You reject the zero change hypothesis. The correct interpretation is: The odds are 5 percent that if the sample of American children in 2006 had been expanded to include the entire population of American children, the change in the proportion of children without health insurance would still not be zero. b Even if the change in the population of American children without health insurance really is zero, 5% of all repeated samples would have produced test statistics that cause you to reject the hypothesis that the change is zero. c The test statistic for the null hypothesis that H: = 0.109 is less than the critical value. d 95 percent of repeated samples would produce confidence intervals within + 0.05 points of 0.117. 23 To test the hypothesis, at a 5% level of significance, that the proportion of American children without health insurance has increased from 0.109, a random sample of 1020 children revealed a sample proportion of 0.121. Compute the p-value. 0.1112 Conclude that proportion of children without health insurance has increased. 0.1112 Conclude that proportion of children without health insurance has not increased 0.0556 Conclude that proportion of children without health insurance has increased 0.0056 Conclude that proportion of children without health insurance has not increased.

Answer 1

21. d

22. a

23. b

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