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1. Of the 500 households that responded to the Christmas tree marketing survey, 38% of them were from rural areas and 62% of them were
1. Of the 500 households that responded to the Christmas tree marketing survey, 38% of them were from rural areas and 62% of them were from the urban areas. According to the census, 36% of the Indiana households are in rural areas and the remaining 64% are in urban areas. Let p be the proportion of the rural respondents. Set up hypotheses about Po and perform a test of significance to examine how well the sample represents the state in_ regard to rural versus urban residence. Summarize your results. A. Set up your Ho and Ha for a hypothesis test. B. What is your test statistic? C. What is your p-value? D. What conditions did you have to check in order to solve this problem? List them and check them. E. What is your decision regarding Ho? F. What is your conclusion in the context of the problem? G. What type of error could you be committing here, Type I or Type II? What would be the impact of that error in terms of the Christmas tree marketing survey? 2. Explain what is wrong with the following: Ho: p = 0.6 and Ha: p > 0.6 3. Land's Beginning sells merchandise through the mail. It is considering buying a list of addresses from a magazine. The magazine claims that at least 25% of its subscriber have high incomes. You believe it's less. You take a random sample of 1,000 subscribers and find that 23% have high incomes. What do you conclude about the claim, based on your data? A. Set up your Ho and Ha for a hypothesis test. B. What is your test statistic? C. What is your p-value? D. What conditions did you have to check in order to solve this problem? List them and check them. E. What is your decision regarding Ho? F. What is your conclusion in the context of the problem? G. What type of error could you be committing here, Type I or Type II? What would be the impact of that error in terms what Land's End believes? 4. Consumer Reports magazine says 60% of their subscribers are men. You believe the actual percentage is higher than that. Your sample of 100 subscribers shows 65% are men. What do you conclude? A. Set up your Ho and Ha for a hypothesis test. B. What is your test statistic? C. What conditions did you have to check in order to solve this problem? List them and check them. D. What is your decision regarding Ho
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