Generally speaking, would you say that most people can be trusted? A random sample of n1 = 242 people in Chicago ages 18-25 showed that r1 = 42 said yes. Another random sample of n2 = 278 people in Chicago ages 35-45 showed that r2 = 74 said yes. Does this indicate that the population proportion of trusting people in Chicago is higher for the older group? Use α = 0.01.
(a) What is the level of significance?
State the null and alternate hypotheses.
aH0: p1 = p2; H1: p1 ≠ p2
bH0: p1 = p2; H1: p1 < p2
c H0: p1 < p2; H1: p1 = p2
dH0: p1 = p2; H1: p1 > p2
(b) What sampling distribution will you use? What assumptions are
you making?
aThe standard normal. The number of trials is sufficiently large.
bThe Student's t. The number of trials is sufficiently large.
c The Student's t. We assume the population distributions are approximately normal.
dThe standard normal. We assume the population distributions are approximately normal.
What is the value of the sample test statistic? (Test the
difference p1 − p2. Do not
use rounded values. Round your final answer to two decimal
places.)
_______________
(c) Find (or estimate) the P-value. (Round your answer to
four decimal places.)
______________
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