Question

A sociologist was interested in examining whether leftist regimes relates to per capita income to grow in capitalist countries. To examine this question, he collected a random sample of five countries with leftist regimes and five countries without leftist regimes over a ten-year period from 1960 to 1970. The leftist regime countries' average growth rates for per capita income were 13, 18, 17, 18, and 12 percent. The non-leftist regime countries' average growth rates were 12, 18, 15, 19, and 12 percent. Based on these data, can the researcher conclude, with 95 percent confidence, that capitalist countries with leftist regimes have different growth rates than those without leftist regimes

Answer 1

SOLUTION-

LET BE THE MEAN GROWTH RATE FOR LEFT REGIMES AND BE THE MEAN GROWTH RATE FOR NON-LEFTIST REGIME. AS PER THE GIVEN CLAIM, THE HYPOTHESIS IS,

AS THE SAMPLES ARE INDEPENDENT, WE PERFORM A TWO SAMPLE-T TEST AT 5% SIGNIFICANCE LEVEL AND USE MINITAB-16 FOR CALCULATIONS.

STEPS- ENTER THE SAMPLES> STAT> BASIC STATISTICS> TWO SAMPLE-T> SELECT THE SAMPLES> UNDER OPTIONS, SET THE CONFIDENCE LEVEL AS 95.0 AND ALTERNATIVE AS 'NOT EQUAL'> OK

OBSERVATION-

THE TEST STATISTIC IS T= 0.21 AND THE CORRESPONDING P-VALUE IS 0.843

AS P-VALUE>0.05, WE FAIL TO REJECT THE NULL HYPOTHESIS. SO WE CANNOT CLAIM THAT LEFTIST REGIMES HAVE DIFFERENT GROWTH RATES THAN NON-LEFTIST.

****IN CASE OF DOUBT, COMMENT BELOW. ALSO LIKE THE SOLUTION, IF POSSIBLE.