Homeowners 2009 In 2009, the U.S. Census Bureaureported that 67.4% of American families owned theirhomes. Census data reveal that the ownership rate in onesmall city is much lower. The city council is debatinga plan to offer tax breaks to first-time home buyers inorder to encourage people to become homeowners. Theydecide to adopt the plan on a 2-year trial basis and use thedata they collect to make a decision about continuing thetax breaks. Since this plan costs the city tax revenues, theywill continue to use it only if there is strong evidence thatthe rate of home ownership is increasing.a) In words, what will their hypotheses be?b) What would a Type I error be?c) What would a Type II error be?d) For each type of error, tell who would be harmed.e) What would
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Homeowners 2009 In 2009, the U.S. Census Bureau
reported that 67.4% of American families owned their
homes. Census data reveal that the ownership rate in one
small city is much lower. The city council is debating
a plan to offer tax breaks to first-time home buyers in
order to encourage people to become homeowners. They
decide to adopt the plan on a 2-year trial basis and use the
data they collect to make a decision about continuing the
tax breaks. Since this plan costs the city tax revenues, they
will continue to use it only if there is strong evidence that
the rate of home ownership is increasing.
a) In words, what will their hypotheses be?
b) What would a Type I error be?
c) What would a Type II error be?
d) For each type of error, tell who would be harmed.
e) What would
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