Mr. Mastrogiacomo is testing the hypothesis that the proportion of households in a large town that have high-speed internet service is equal to 0.7 against the alternative that the proportion is different from 0.7. What is the chief advantage of using a confidence interval to test this hypothesis rather than a significance test?
Mr. Mastrogiacomo is testing the hypothesis that the proportion of households in a large town that have high-speed internet service is equal to 0.7 against the alternative that the proportion is different from 0.7. What is the chief advantage of using a confidence interval to test this hypothesis rather than a significance test?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Transcribed Image Text:Mr. Mastrogiacomo is testing the hypothesis that the proportion of households in
a large town that have high-speed internet service is equal to 0.7 against the
alternative that the proportion is different from 0.7. What is the chief advantage
of using a confidence interval to test this hypothesis rather than a significance
test? *
A confidence interval can be one-sided or two-sided but the significance test is
always two-sided
The conditions for using a confidence interval are less restrictive than for a
significance test.
O A confidence interval has more power than the significance test.
O A confidence interval gives a set of plausible values for the true proportion.
OThere is no advantage. A significance test should be used, not a confidence interval.
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