Country Financial, a financial services company, uses surveys of adults age 18 and older todetermine if personal financial fitness is changing over time (Usa today, April 4, 2012). InFebruary 2012, a sample of 1000 adults showed 410 indicating that their financial securitywas more than fair. In February 2010, a sample of 900 adults showed 315 indicating thattheir financial security was more than fair.a. State the hypotheses that can be used to test for a significant difference between thepopulation proportions for the two years.b. What is the sample proportion indicating that their financial security was more thanfair in 2012? In 2010?c. Conduct the hypothesis test and compute the p-value. At a .05 level of significance,what is your conclusion?d. What is the 95% confidence interval estimate of the difference between the twopopulation proportions?
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.
Country Financial, a financial services company, uses surveys of adults age 18 and older to
determine if personal financial fitness is changing over time (Usa today, April 4, 2012). In
February 2012, a sample of 1000 adults showed 410 indicating that their financial security
was more than fair. In February 2010, a sample of 900 adults showed 315 indicating that
their financial security was more than fair.
a. State the hypotheses that can be used to test for a significant difference between the
population proportions for the two years.
b. What is the sample proportion indicating that their financial security was more than
fair in 2012? In 2010?
c. Conduct the hypothesis test and compute the p-value. At a .05 level of significance,
what is your conclusion?
d. What is the 95% confidence
population proportions?
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