Statistics Null Hypothesis Rejection
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An economic researcher would like to know whether he can reject the null hypothesis at the 0.10 level, that no more than 20% of the households in Pennsylvania make more than $70,000 per year.
a. If 200 Pennsylvania households are chosen at random, how many of them would have to be earning more than $70,000 per year for the researcher to reject the null hypothesis?
b. Assuming that the true proportion of all Pennsylvania households with annual incomes of at least $70,000 is 0.217, find the probability of not rejecting a false null hypothesis when the sample size is 200.
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Solution Summary
Binomial probability distribution
Probability of not rejecting a false null hypothesis
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Null hypothesis
An economic researcher would like to know whether he can reject the null hypothesis at the 0.10 level, that no more than 20% of the households in Pennsylvania make nore than $70,000 per year.
a. If 200 Pennsylvania households are chosen at random, how many of them would have to be earning more than $70,000 per year for the researcher to reject the null hypothesis?
Let p be the proportion of households that earn more than ...
Purchase this Solution
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