A state housing department is trying to determine if housing prices in county B are lower than in county A. The department decides to randomly sample recently sold houses in both counties and determine what proportion sold for more than $250,000. Since county A is considerably larger than county B, the housing department chose a larger sample from county A. The results of the data collected are shown below. County A County B Successes 366 Successes 192 Observations 700 Observations 400 p-hat_1 0.523 p-hat_2 0.48 p= Ex: 1.234 Confidence level 90% z-score -1.372 p-value 0.085 1 2 3 County A samples: n₁ = Ex: 9 County B samples: n₂ = Sample proportion for county A samples: p₁ = Ex: 1.234 Sample proportion for county B samples: p2 = -3 -2 z = Ex: 1.234 -1
A state housing department is trying to determine if housing prices in county B are lower than in county A. The department decides to randomly sample recently sold houses in both counties and determine what proportion sold for more than $250,000. Since county A is considerably larger than county B, the housing department chose a larger sample from county A. The results of the data collected are shown below. County A County B Successes 366 Successes 192 Observations 700 Observations 400 p-hat_1 0.523 p-hat_2 0.48 p= Ex: 1.234 Confidence level 90% z-score -1.372 p-value 0.085 1 2 3 County A samples: n₁ = Ex: 9 County B samples: n₂ = Sample proportion for county A samples: p₁ = Ex: 1.234 Sample proportion for county B samples: p2 = -3 -2 z = Ex: 1.234 -1
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 19SGR
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Question
![### Hypothesis Test for the Difference Between Two Population Proportions
**Overview:**
A state housing department is attempting to ascertain if housing prices in County B are lower than those in County A. The department conducted a random sampling of recently sold houses in both counties, focusing on houses sold for more than $250,000. Given that County A is significantly larger than County B, a larger sample was drawn from County A. The data collected is summarized below.
**Data Summary:**
| | County A | County B |
|----------------------|--------------------|------------------|
| **Successes** | 366 | 192 |
| **Observations** | 700 | 400 |
| **p-hat** | 0.523 | 0.48 |
**Statistical Analysis:**
- **Confidence Level:** 90%
- **z-score:** -1.372
- **p-value:** 0.085
**Graphical Representation:**
- A normal distribution curve is displayed with a shaded region corresponding to the z-score of -1.372. This shaded area indicates the region of rejection for the hypothesis test at a 90% confidence level.
### Detailed Explanation:
The hypothesis test aims to determine if the proportion of houses sold for more than $250,000 in County B is significantly lower than in County A. The sample data provides the following:
1. **Sample Sizes and Proportions:**
- County A:
- Sample Size (\( n_1 \)) = 700
- Sample Proportion (\( \hat{p}_1 \)) = 0.523
- County B:
- Sample Size (\( n_2 \)) = 400
- Sample Proportion (\( \hat{p}_2 \)) = 0.48
2. **Hypothesis Testing:**
- Null Hypothesis (\( H_0 \)): No difference in the proportions (\( p_1 = p_2 \))
- Alternative Hypothesis (\( H_a \)): Proportion is greater in County A than in County B (\( p_1 > p_2 \))
3. **Analysis and Interpretation:**
- Given the z-score of -1.372 and the p-value of 0.085 at a 90% confidence level, the p-value exceeds the common significance level](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27d96fb9-96d5-477b-b416-22e1c389b55a%2F2174346a-a6ae-45db-a3b1-8ce961d83225%2Frquzeyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Hypothesis Test for the Difference Between Two Population Proportions
**Overview:**
A state housing department is attempting to ascertain if housing prices in County B are lower than those in County A. The department conducted a random sampling of recently sold houses in both counties, focusing on houses sold for more than $250,000. Given that County A is significantly larger than County B, a larger sample was drawn from County A. The data collected is summarized below.
**Data Summary:**
| | County A | County B |
|----------------------|--------------------|------------------|
| **Successes** | 366 | 192 |
| **Observations** | 700 | 400 |
| **p-hat** | 0.523 | 0.48 |
**Statistical Analysis:**
- **Confidence Level:** 90%
- **z-score:** -1.372
- **p-value:** 0.085
**Graphical Representation:**
- A normal distribution curve is displayed with a shaded region corresponding to the z-score of -1.372. This shaded area indicates the region of rejection for the hypothesis test at a 90% confidence level.
### Detailed Explanation:
The hypothesis test aims to determine if the proportion of houses sold for more than $250,000 in County B is significantly lower than in County A. The sample data provides the following:
1. **Sample Sizes and Proportions:**
- County A:
- Sample Size (\( n_1 \)) = 700
- Sample Proportion (\( \hat{p}_1 \)) = 0.523
- County B:
- Sample Size (\( n_2 \)) = 400
- Sample Proportion (\( \hat{p}_2 \)) = 0.48
2. **Hypothesis Testing:**
- Null Hypothesis (\( H_0 \)): No difference in the proportions (\( p_1 = p_2 \))
- Alternative Hypothesis (\( H_a \)): Proportion is greater in County A than in County B (\( p_1 > p_2 \))
3. **Analysis and Interpretation:**
- Given the z-score of -1.372 and the p-value of 0.085 at a 90% confidence level, the p-value exceeds the common significance level
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