Question
How to Measure Income with Equal Accuracy in All US States (20 points) a). The Census Bureau wishes to estimate mean household income by state,
How to Measure Income with Equal Accuracy in All US States (20 points) a). The Census Bureau wishes to estimate mean household income by state, by taking a random sample of households from each state. It wishes to choose sample sizes such that the estimates for all states have about the same accuracy. Which procedure will come closest to achieving this: selecting an equal percentage of households from each state, or an equal number of households? (5 points) 1. Equal percentages (0.1% Wyoming households, 0.1% California, etc, etc) or 2. Equal numbers (1000 households from Wyoming, 1000 from California, etc) Be sure to justify your answer with an explanation. b). A p-value is found to be 0.03 . i). Explain the meaning of that p-value if calculated in a two sample test such as comparing a random sample of income levels in New York and Philadelphia. ii). Now explain the meaning of a 0.03 p-value in the context of regression, when the X variable is education and the Y variable is income. iii). Lastly, explain why many statisticians prefer the presentation of p-values over classical hypothesis test findings
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