Inference
Not what you're looking for?
An insurance company is thinking about offering discounts on its life insurance policies to nonsmokers. As part of its analysis it randomly selects 200 men who are 60 years old and asks them whether or not they smoke at least one pack of cigarettes per day and whether they have ever suffered from heart disease. The results are stored in file smokers, where 2= suffer form heart disease and 1= do not suffer from heart disease.
a. Can the company conclude at the 10% significance level that smokers have higher incidence of heart disease than nonsmokers?
b. Estimate with 90% confidence the difference in the fractions of men suffering from heart disease between smokers and nonsmokers.
Purchase this Solution
Solution Summary
An insurance company is thinking about offering discounts on its life insurance policies to nonsmokers. As part of its analysis it randomly selects 200 men who are 60 years old and asks them whether or not they smoke at least one pack of cigarettes per day and whether they have ever suffered from heart disease. The results are stored in file smokers, where 2= suffer form heart disease and 1= do not suffer from heart disease.
a. Can the company conclude at the 10% significance level that smokers have higher incidence of heart disease than nonsmokers?
b. Estimate with 90% confidence the difference in the fractions of men suffering from heart disease between smokers and nonsmokers.
Solution Preview
a. Can the company conclude at the 10% significance level that smokers have higher incidence of heart disease than nonsmokers?
<br>
<br>There are 38 smokers and 162 non-smokers.
<br>Within the smokers, 10 persons suffer form heart disease, and the proportion is p1 = 10/38 = 26.32%
<br>Within the non-smokers, 12 persons suffer form heart disease, and the proportion is p1 = 12/162 = 7.41%
<br>the difference between the sample proportions is
<br>DP = p1 - p2 = 0.2632 - 0.0741 = 0.1891.
<br>
<br>Then we are to ...
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.