5. Some states that operate a lottery believe that restricting the use of lottery profits to supporting education makes the lottery more profitable. Other states permit general use of the lottery income. The profitability of the lottery for a group of states in each category is given below: State Lottery Profits For Education For General Use State % Profit State % Profit New Mexico 24 Massachusetts 21 Idaho 25 Maine 22 Kentucky 28 lowa 24 South Carolina 28 Colorado 27 Georgia 28 Indiana 27 Missouri 29 District of Columbia 28 Ohio 29 Connecticut 29 Tennessee 31 Pennsylvania 32 Florida 31 Мaryland 32 California 35 North Carolina 35 New Jersey 35 l of States 12 * of States 9. Mean 29.833 Mean 26.889 St. Dev St. Dev. 3.7132 3.9511 Let 41 denote the mean profitability of states who use their lottery profits for education, and uz denote the mean profitability of states who use their lottery profits for general use. (a) State the appropriate hypotheses to be tested for this problem (refer to the motivation behind this problem stated before the table). (b) Draw a picture of the rejection region on the appropriate curve, and identify the critical value. Assume that a significance level of a = 0.1 is to be used. (c) Calculate the value of the appropriate test statistic; make sure to show all of your intermediate work to ensure the potential of obtaining partial credit. (d) What should be the decision and conclusions of this hypothesis test?

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5. Some states that operate a lottery believe that restricting the use of lottery profits to supporting
education makes the lottery more profitable. Other states permit general use of the lottery income.
The profitability of the lottery for a group of states in each category is given below:
State Lottery Profits
For Education
For General Use
State
% Profit State
% Profit
New Mexico
24
Massachusetts
21
Idaho
25
Maine
22
Kentucky
28
Iowa
24
South Carolina
28
Colorado
27
Georgia
28
Indiana
27
Missouri
29
District of Columbia
28
Ohio
29
Connecticut
29
Tennessee
31
Pennsylvania
32
Florida
31
Maryland
32
California
35
North Carolina
35
New Jersey
35
# of States
12
# of States
9.
Mean
29.833
Mean
26.889
St. Dev
3.7132 St. Dev.
3.9511
Let 4i denote the mean profitability of states who use their lottery profits for education, and 42 denote
the mean profitability of states who use their lottery profits for general use.
(a) State the appropriate hypotheses to be tested for this problem (refer to the motivation behind this
problem stated before the table).
(b) Draw a picture of the rejection region on the appropriate curve, and identify the critical value.
Assume that a significance level of a = 0.1 is to be used.
(c) Calculate the value of the appropriate test statistic; make sure to show all of your intermediate
work to ensure the potential of obtaining partial credit.
(d) What should be the decision and conclusions of this hypothesis test?
Transcribed Image Text:5. Some states that operate a lottery believe that restricting the use of lottery profits to supporting education makes the lottery more profitable. Other states permit general use of the lottery income. The profitability of the lottery for a group of states in each category is given below: State Lottery Profits For Education For General Use State % Profit State % Profit New Mexico 24 Massachusetts 21 Idaho 25 Maine 22 Kentucky 28 Iowa 24 South Carolina 28 Colorado 27 Georgia 28 Indiana 27 Missouri 29 District of Columbia 28 Ohio 29 Connecticut 29 Tennessee 31 Pennsylvania 32 Florida 31 Maryland 32 California 35 North Carolina 35 New Jersey 35 # of States 12 # of States 9. Mean 29.833 Mean 26.889 St. Dev 3.7132 St. Dev. 3.9511 Let 4i denote the mean profitability of states who use their lottery profits for education, and 42 denote the mean profitability of states who use their lottery profits for general use. (a) State the appropriate hypotheses to be tested for this problem (refer to the motivation behind this problem stated before the table). (b) Draw a picture of the rejection region on the appropriate curve, and identify the critical value. Assume that a significance level of a = 0.1 is to be used. (c) Calculate the value of the appropriate test statistic; make sure to show all of your intermediate work to ensure the potential of obtaining partial credit. (d) What should be the decision and conclusions of this hypothesis test?
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