Hypothesis testing problems
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Assume that a 2005 poll of 1000 American voters found that 76% of Republicans favored ending the tax on dividend income, as did 42% of Democrats and 54% of Independents. Also assume that Republicans comprise 45% of American voters, Democrats 45% and Independents 10%.
a.What percentage of American voters are in favor of ending the tax on dividend income?
b.Is party affiliation independent of whether one favors ending the tax on dividends?
Please show in excel.
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Solution Summary
The solution provides step by step method for the calculation of chi square test statistic . Formula for the calculation and Interpretations of the results are also included.
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Voters
Assume that a 2005 poll of 1000 American voters found that 76% of Republicans favored ending the tax on dividend income, as did 42% of Democrats and 54% of Independents. Also assume that Republicans comprise 45% of American voters, Democrats 45% and Independents 10%.
a. What percentage of American voters are in favor of ending the tax on dividend income?
b. Is party affiliation independent of whether one favors ending the tax on dividends?
Please show in excel.
Answers
a. No. of Republicans favored ending the tax on dividend income
= 1000 * 45% * 76% = 342
...
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