STAT 201 Recitation Week 9

# STAT 201 Recitation Week 9 - 9-32(P.373 • A major issue...

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Click to edit Master subtitle style 9/26/11 STAT 201 Recitation Week 9

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9/26/11 9-17 (P.367) Starting in 2008 an increasing number of people found themselves facing mortgages that were worth more than the value of their homes. A fund manger was interested in determining the group most likely to default on their mortgages. He speculates that older people are less likely to default on their mortgages and thinks the average age of those who do is 55 years. To test this, a random sample of 30 who had defaulted was selected; the following data reflect the ages of the sampled individuals: 40 55 78 27 55 33 51 76 54 67 40 31 60 61 50 42 78 80 25 38 74 46 48 57 30 65 80 26 46 49
9/26/11 A. State the appropriate null and alternative hypotheses 55 : 55 : < μ A o H H

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9/26/11 B. Use the test statistic approach to test the null hypothesis with =0.01 α 07 . 52 30 562 , 1 = = = n x x 19 . 17 1 ) ( 2 = - - = n x x s 2.4620 - is test tail one a for value - t critical the 29, = df and 0.01 = alpha for on table distributi - t the From 93 . 0 30 19 . 17 55 07 . 52 - = - = - = n s x t μ Because t = -0.93 > -2.4620, the null hypothesis is not rejected

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Unformatted text preview: 9/26/11 9-32 (P.373) • A major issue facing many states is whether to legalize casino gambling. Suppose the governor of one state believes that more than 55% of the state’s registered voters would favor some form of legal casino gambling. To prove this belief, a consulting firm surveyed a random sample of 300 voters in the state. Of these 300 voters, 175 actually favored legalized gambling. a. State the appropriate null and alternative hypotheses Ho: * < 0.55 9/26/11 • b. assuming a significance level of 0.05 is used, what conclusion should be governor reach based on these sample data? p= 175/300 = .5833 1594 . 1 300 ) 55 . 1 ( 55 . 55 . 5833 . ) 1 ( =--=--= n p z π Since z = 1.1594 < 1.645, do not reject the null hypothesis. The sample data do not provide sufficient evidence to conclude that more than 55 percent of the population favor legalized gambling...
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## This note was uploaded on 09/26/2011 for the course STAT 201 taught by Professor Drex during the Spring '04 term at Drexel.

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STAT 201 Recitation Week 9 - 9-32(P.373 • A major issue...

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