Share
Explore BrainMass

Test of hypothesis for proportions and standard error

Nationally the proportion of American households with income above $100,000 is 10%. A researcher in State of California finds that out of a sample of 300 households , 35 have income above $ 100,000. Can it be concluded from this sample that the proportion of households in california with income of $100,000 exceeds the proportion of homes eith income of $100,000 in the rest of the country.Test to a significance of 10%.Calculate p value. Which type of error- Type I or II.What are the consequences of commiting that type of error.

Based on the definition of a Type I or Type II error, which error could have been commited based on the results of the hypothesis test. What are the potential consequences of committing that error for this situation.

Attachments

Solution Preview

Nationally the proportion of American households with income above $100,000 is 10%. A researcher in State of California finds that out of a sample of 300 households , 35 have income above $ 100,000. Can it be concluded from this sample that the proportion of households in california with income of $100,000 exceeds the proportion of homes eith income of $100,000 in the rest of the country.Test to a significance of 10%. Calculate p value. Which type of error- Type I or II.What are the consequences of ...

Solution Summary

The solution carries out a one sample hypothesis test for proportions.

$2.19