Introduction to Statistics and Data Analysis
5th Edition
ISBN: 9781305445963
Author: PECK
Publisher: Cengage
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Chapter 10.3, Problem 30E
The paper “Debt Literacy, Financial Experiences and Over-Indebtedness” (Social Science Research Network, Working paper W14808, 2008) included analysis of data from a national sample of 1000 Americans. One question on the survey was:
“You owe $3000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rate of 12% (or 1% per month), how many years would it take to eliminate your credit card debt if you made no additional charges?”
Answer options for this question were: (a) less than 5 years; (b) between 5 and 10 years; (c) between 10 and 15 years; (d) never—you will continue to be in debt; (e) don’t know; and (f) prefer not to answer.
- a. Only 354 of the 1000 respondents chose the correct answer of never. For purposes of this exercise, assume that the sample is representative of adult Americans. Is there convincing evidence that the proportion of adult Americans who can answer this question correctly is less than 0.40 (40%)? Use α = 0.05 to test the appropriate hypotheses. (Hint: See Example 10.10.)
- b. The paper also reported that 37.8% of those in the sample chose one of the wrong answers (a, b, and c) as their response to this question. Is it reasonable to conclude that more than one-third of adult Americans would select a wrong answer to this question? Use α = 0.05.
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A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience, a population standard deviation of σ = $1,600 may be assumed.
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(Please include all the 7 steps in hypothesis testing)
Steps in hypothesis testing
p-value Approach
Develop the null and alternative hypothesis
Specify the level of significance, α
Choose the test statistic (z or t)
Calculate the test statistic
Use the value of the…
Chapter 10 Solutions
Introduction to Statistics and Data Analysis
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Ch. 10.1 - Prob. 11ECh. 10.2 - Prob. 12ECh. 10.2 - Prob. 13ECh. 10.2 - Medical personnel are required to report suspected...Ch. 10.2 - Prob. 15ECh. 10.2 - A television manufacturer claims that (at least)...Ch. 10.2 - A manufacturer of hand-held calculators receives...Ch. 10.2 - Water specimens are taken from water used for...Ch. 10.2 - Suppose that for a particular hypothesis test, the...Ch. 10.2 - Suppose that you arc an inspector for the Fish and...Ch. 10.2 - Prob. 21ECh. 10.2 - An automobile manufacturer is considering using...Ch. 10.3 - Use the definition of the P-value to explain the...Ch. 10.3 - For which of the following P-values will the null...Ch. 10.3 - Prob. 25ECh. 10.3 - Let p denote the proportion of students at a...Ch. 10.3 - Assuming a random sample from a large population,...Ch. 10.3 - Prob. 28ECh. 10.3 - In a survey of 1000 women age 22 to 35 who work...Ch. 10.3 - The paper Debt Literacy, Financial Experiences and...Ch. 10.3 - "Most Like it Hot" is the title of a press release...Ch. 10.3 - In a survey of 1005 adult Americans, 46% indicated...Ch. 10.3 - Prob. 33ECh. 10.3 - Prob. 34ECh. 10.3 - Prob. 35ECh. 10.3 - Prob. 36ECh. 10.3 - Prob. 37ECh. 10.3 - The article Cops Get Screened for Digital Dirt...Ch. 10.3 - Refer back to the previous exercise. The actual...Ch. 10.3 - The report 2007 Electronic Monitoring ...Ch. 10.3 - Prob. 41ECh. 10.4 - Prob. 42ECh. 10.4 - Give as much information as you can about the...Ch. 10.4 - Paint used to paint lines on roads must reflect...Ch. 10.4 - A certain pen has been designed so that actual...Ch. 10.4 - Prob. 46ECh. 10.4 - The paper Playing Active Video Games Increases...Ch. 10.4 - Prob. 48ECh. 10.4 - Prob. 49ECh. 10.4 - Prob. 50ECh. 10.4 - Prob. 51ECh. 10.4 - Medical research has shown that repeated wrist...Ch. 10.4 - Prob. 53ECh. 10.4 - A comprehensive study conducted by the National...Ch. 10.4 - Prob. 55ECh. 10.4 - The paper titled Music for Pain Relief (The...Ch. 10.4 - Many consumers pay careful attention to stated...Ch. 10.4 - Much concern has been expressed regarding the...Ch. 10.5 - The power of a test is influenced by the sample...Ch. 10.5 - Prob. 60ECh. 10.5 - Let denote the mean lifetime (in hours) for a...Ch. 10.5 - The city council in a large city has become...Ch. 10.5 - The amount of shaft wear after a fixed mileage was...Ch. 10.5 - Optical fibers are used in telecommunications to...Ch. 10.5 - Prob. 65ECh. 10.6 - In 2006, Boston Scientific sought approval for a...Ch. 10.6 - The article Boy or Girl: Which Gender Baby Would...Ch. 10 - Prob. 68CRCh. 10 - In a national survey of 2013 adults, 1590...Ch. 10 - Students at the Akademia Podlaka conducted an...Ch. 10 - Prob. 71CRCh. 10 - Prob. 72CRCh. 10 - A number of initiatives on the topic of legalized...Ch. 10 - Prob. 74CRCh. 10 - Prob. 75CRCh. 10 - Prob. 76CRCh. 10 - Prob. 77CRCh. 10 - Duck hunting in populated areas faces opposition...Ch. 10 - Past experience has indicated that the response...Ch. 10 - An automobile manufacturer who wishes to advertise...Ch. 10 - A student organization uses the proceeds from a...Ch. 10 - A hot tub manufacturer advertises that with its...Ch. 10 - Prob. 1CRECh. 10 - Prob. 2CRECh. 10 - Prob. 3CRECh. 10 - Prob. 4CRECh. 10 - Prob. 5CRECh. 10 - The article Should Canada Allow Direct-to-Consumer...Ch. 10 - Prob. 7CRECh. 10 - It probably wouldnt surprise you to know that...Ch. 10 - The article Doctors Cite Burnout in Mistakes (San...Ch. 10 - The National Geographic Society conducted a study...Ch. 10 - Heinz Plays Catch-up After Under-Filling Ketchup...Ch. 10 - In a survey conducted by Yahoo Small Business,...Ch. 10 - In an AP-AOL sports poll (Associated Press,...Ch. 10 - Prob. 14CRECh. 10 - A survey of teenagers and parents in Canada...Ch. 10 - The same survey referenced in the previous...
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