According to the Bureau of Labor Statistics, 10.1% of Americans are self-employed. A researcher wants to determine

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According to the Bureau of Labor Statistics, 10.1% of Americans are self-employed. A researcher wants to determine if the self-employment rate in a certain area is different. She takes a random sample of 500 working residents from the area and finds that 62 are self-employed.

a. Test the hypothesis that the proportion of self-employed workers in this area is different from 10.1%. Use a 0.05 significance level.

b. After conducting the hypothesis test, a further question one might ask, “What proportion of workers in this area are self-employed?” Use the sample data to find a 95% confidence interval for the proportion of workers who are self-employed in the area from which the sample was drawn. How does this confidence interval support the hypothesis test conclusion?

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Introductory Statistics Exploring The World Through Data

ISBN: 9780135163146

3rd Edition

Authors: Robert Gould, Rebecca Wong, Colleen N. Ryan

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