Confidence in banks: A poll conducted in 2012 asked a random sample of 1217 adults in the United States how much confidence they had in banks and other financial institutions. A total of 160 adults said that they had a great deal of confidence. An economist claims that greater than 11% of U.S. adults have a great deal of confidence in banks. Can you conclude that the economist's claim is true? Use both =α0.05 and =α0.10 levels of significance and the P-value method with the TI-84 Plus calculator.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Confidence in banks: A poll conducted in
asked a random sample of
adults in the United States how much confidence they had in banks and other financial institutions. A total of
adults said that they had a great deal of confidence. An economist claims that greater than
of U.S. adults have a great deal of confidence in banks. Can you conclude that the economist's claim is true? Use both
and
levels of significance and the P-value method with the TI-84 Plus calculator.
(a) State the appropriate null and alternate hypotheses.
|
:H0
:H1
|
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