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Case: It is rumoured thatthe Bank of Canada will increase interest rates next year [1]. Suppose a survey is conducted by a polling organization, and

Case:It is rumoured thatthe Bank of Canada will increase interest rates next year [1]. Suppose a survey is conducted by a polling organization, and Saskatchewanians answered the question: "are you not at all concerned, somewhat concerned, or very concerned that interest rates will climb?". The results are given below.

Not at all concerned Somewhat concerned Very concerned
3300 1450 5250

The same survey was conducted in Ontario, and it was found that 38% of Ontarians were not at all concerned, 12% were somewhat concerned, and 50% were very concerned. The polling organization is interested in determining if the proportions of people who are not at all concerned, somewhat concerned, or very concerned about interest rates rising are the same in Saskatchewan as they are in Ontario. Conduct an appropriate hypothesis test by filling in the blanks below. Let group 1 be the "not at all concerned" group; group 2 be the "somewhat concerned" group, and group 3 be the "very concerned" group.

1) [1 mark] State the null and alternative hypotheses using the appropriate notation.

2) [1 mark] Calculate the test statistic. Please round your final answer to 1 decimal place. Note: you may use Excel to calculate the test statistic. No need to show your work.

3) [1 mark] Find the p-value using Excel. Use your rounded test statistic from part 2. For example, suppose this question had instead asked for you to calculate a sample mean of 10 values. If I had data in cells A1 through A10 in Excel, and I typed =average(A1:A10), hit enter, and got the result 10.2, then I would provide: =average(A1:A10)=10.2. Note:you will get a strange value here. Don't worry about it.

4) [1 mark] Based on this p-value, do you reject the null hypothesis (answer "yes" or "no")?

5) [1 mark] In one sentence, conclude in the context of the original question.

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