There appears to be some evidence suggesting that earlier retirement may lead to memory decline (Rohwedder & Willis, 2010).  The researchers gave a memory test to men and women aged 60-64 in several countries that have different retirement ages.  For each country, the researchers recorded the average memory score and the percentage of individuals in the 60-64 age range who were retired.  Note that a higher percentage retired indicates a younger retirement age for that country.  The following data are similar to the results from the study. For this problem, complete the following steps: (1) Identify the two hypotheses (2) Determine the critical region for your decision (use a=0.05) (3) Compute the test statistic (4) Use the test statistic to make a decision and interpret that decision Country % Retired (x) Memory Score (y) Sweden 39 9.3 U.S.A. 48 10.9 England 59 10.7 Germany 70 9.1 Spain 74 6.4 Netherlands 78 9.1 Italy 81 7.2 France 87 7.9 Belgium 88 8.5 Austria 91 9.0

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2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.