6.36 Diabetes and unemployment:  A 2012 Gallup poll surveyed Americans about their employment status and whether or not they have diabetes. The survey results indicate that 1.5% of the 47,774 employed (full or part time) and 2.5% of the 5,855 unemployed 18-29 year olds have diabetes.

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6.36 Diabetes and unemployment:  A 2012 Gallup poll surveyed Americans about their employment status and whether or not they have diabetes. The survey results indicate that 1.5% of the 47,774 employed (full or part time) and 2.5% of the 5,855 unemployed 18-29 year olds have diabetes.


(a) Create a two-way table presenting the results of this study.

  Diabetes No Diabetes
Employed    
Unemployed    



(b) State appropriate hypotheses to test for independence of incidence of diabetes and employment status.

  • H0: μdiabetesemployed
    Ha: μdiabetes ≠ μemployed
  • H0: Diabetes status and employment status are dependent
    Ha: Diabetes status and employment status are not dependent
  • H0: Diabetes status and employment status are independent
    Ha: Diabetes status and employment status are not independent

(c) The sample difference is about 1%. If we completed the hypothesis test, we would find that the p-value is very small (about 0), meaning the difference is statistically significant. Use this result to explain the difference between statistically significant and practically significant findings.

  • If our data don't provide strong enough evidence to reject the null hypothesis we should just collect more data until we can report the results that we want
  • Being unemployed causes people to get diabetes at a higher rate
  • Since the sample sizes are so large and the difference between the two sample proportions is so small, we observe a statistically significant difference which may not be practically significant
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