Question

Is college worth it? Among a simple random sample of 319 American adults who do not have a four-year college degree and are not currently enrolled in school, 45% said they decided not to go to college because they could not afford school. Round answers to 4 decimal places.

1. A newspaper article states that only a minority of the Americans who decide not to go to college do so because they cannot afford it and uses the point estimate from this survey as evidence. What are the correct hypotheses for conducting a hypothesis test to determine if these data provide strong evidence supporting this statement? A. H0:p=0.5, HA:p<0.5 B. H0:p=0.5, HA:p>0.5 C. H0:p=0.5, HA:p≠0.5

2. Calculate the test statistic for this hypothesis test. =

3. Calculate the p-value for this hypothesis test.

4. What is your conclusion using α = 0.01? A. Do not reject H0 B. Reject H0

Answer 1

Given in a random sample of 319 American adults 45% said they decided not to to college because they could not afford school.

Given name=319

We want to test the claim that only a minority of the Americans who decide not to go to school because they can not afford it.

The hypothesis testing problem is

Vs

The test statistic is

3) The pvalue for the test statistic is

 by using Z distribution table

Since p value >0.01, we are unable to reject the null hypothesis at 5% level of significance.

Therefore we don't have enough evidence to claim that the only a minority of the adult Americans who decided not to go to school because they cannot afford it.