A national sample of adults in the United States reported they spend 35% of their income on housing. Suppose you find that a sample of elderly adults spend 46% of their income on housing, p = .07 with age accounting for 20% of the variability in spending.

State your null and alternative hypotheses.

Can you reject the null hypothesis? Why or why not?

What is the probability of a Type I error? Type II error?

How might you reduce the probability of a Type II error?

Interpret the effect size in the study. Suppose you find M = .35 income on housing, 95% CI [.10, .60]. How would you interpret this confidence interval?

What can you say about the practical significance of your finding?