Technology Anxiety In a 2018 survey conducted by Northeastern University, 28 % of working adults with education levels less than a bachelor’s degree worried that their job would be eliminated due to new technology or automation. This was based on a 95 % confidence interval with a margin of error of 3 percentage points. a. Report the confidence interval for the proportion of adults with education level less than a bachelor’s degree who are worried about job loss due to new technology or automation. b. If the sample size were smaller and the sample proportion stayed the same, would the resulting interval be wider or narrower than the one obtained in part a? c. If the confidence level were 99 % rather than 95 % and the sample proportion stayed the same, would the interval be wider or narrower than the one obtained in part a? d. In 2018 the population of the United States was roughly 327 million. If 50 million people were added to the population what effect, if any, would this have on the intervals obtained in this problem?
Technology Anxiety In a 2018 survey conducted by Northeastern University, 28 % of working adults with education levels less than a bachelor’s degree worried that their job would be eliminated due to new technology or automation. This was based on a 95 % confidence interval with a margin of error of 3 percentage points. a. Report the confidence interval for the proportion of adults with education level less than a bachelor’s degree who are worried about job loss due to new technology or automation. b. If the sample size were smaller and the sample proportion stayed the same, would the resulting interval be wider or narrower than the one obtained in part a? c. If the confidence level were 99 % rather than 95 % and the sample proportion stayed the same, would the interval be wider or narrower than the one obtained in part a? d. In 2018 the population of the United States was roughly 327 million. If 50 million people were added to the population what effect, if any, would this have on the intervals obtained in this problem?
Solution Summary: The author explains how the confidence interval for the population proportion is (0.25,0.31).
Technology Anxiety In a 2018 survey conducted by Northeastern University,
28
%
of working adults with education levels less than a bachelor’s degree worried that their job would be eliminated due to new technology or automation. This was based on a
95
%
confidence interval with a margin of error of 3 percentage points.
a. Report the confidence interval for the proportion of adults with education level less than a bachelor’s degree who are worried about job loss due to new technology or automation.
b. If the sample size were smaller and the sample proportion stayed the same, would the resulting interval be wider or narrower than the one obtained in part a?
c. If the confidence level were
99
%
rather than
95
%
and the sample proportion stayed the same, would the interval be wider or narrower than the one obtained in part a?
d. In 2018 the population of the United States was roughly 327 million. If 50 million people were added to the population what effect, if any, would this have on the intervals obtained in this problem?
Definition Definition Number of subjects or observations included in a study. A large sample size typically provides more reliable results and better representation of the population. As sample size and width of confidence interval are inversely related, if the sample size is increased, the width of the confidence interval decreases.
Note: The purpose of this problem below is to use computational techniques (Excelspreadsheet, Matlab, R, Python, etc.) and code the dynamic programming ideas seen inclass. Please provide the numerical answer to the questions as well as a sample of yourwork (spreadsheet, code file, etc.).We consider an N-period binomial model with the following properties: N = 60, thecurrent stock price is S0 = 1000; on each period, the stock price increases by 0.5% whenit moves up and decreases by 0.3% when it moves down. The annual interest rate on themoney market is 5%. (Notice that this model is a CRR model, which means that thebinomial tree is recombining.)(a) Find the price at time t0 = 0 of a (European) call option with strike price K = 1040and maturity T = 1 year.(b) Find the price at time t0 = 0 of a (European) put option with strike price K = 1040and maturity T = 1 year.(c) We consider now, that you are at time t5 (i.e. after 5 periods, which represents 1month later). Assume that the stock…
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Hypothesis Testing - Solving Problems With Proportions; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=76VruarGn2Q;License: Standard YouTube License, CC-BY
Hypothesis Testing and Confidence Intervals (FRM Part 1 – Book 2 – Chapter 5); Author: Analystprep;https://www.youtube.com/watch?v=vth3yZIUlGQ;License: Standard YouTube License, CC-BY