Santa Claus and North Pole Inc. currently receive a generous tax credit from the US Government, provided that at least 71% of American children believe in Santa Claus. The IRS is auditing the company, and believes that perhaps fewer than 71% of American children currently believe in Santa Claus (and thus, the company should no longer qualify for the tax credit). The auditor is conducting a hypothesis test at the alpha = 0.01 level of significance to determine whether or not they should qualify for the credit . A. Which would be correct hypotheses for this test ? -h0:p=0.71,h1:p<0.71 -h0:p=0.71,h1:p>0.71
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.
Santa Claus and North Pole Inc. currently receive a generous tax credit from the US Government, provided that at least 71% of American children believe in Santa Claus. The IRS is auditing the company, and believes that perhaps fewer than 71% of American children currently believe in Santa Claus (and thus, the company should no longer qualify for the tax credit). The auditor is conducting a hypothesis test at the alpha = 0.01 level of significance to determine whether or not they should qualify for the credit .
A. Which would be correct hypotheses for this test ?
-h0:p=0.71,h1:p<0.71
-h0:p=0.71,h1:p>0.71
B. a random sample of 110 children resulted in 67 that said they currently believe in Santa Claus. Find the test statistic (2 decimal places).
C. Give the P-value (4 decimal places).
please only solve part B and C. Please explain steps!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
