13th Edition

ISBN: 9781323789667

Author: Triola

Publisher: PEARSON C

Concept explainers

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.

Videos

Textbook Question

Chapter 9.1, Problem 22BSC

Testing Claims About Proportions. In Exercises 7–22, lest the given claim, Identify the null hypothesis, alternative hypothesis, test statistic, P-value or critical value(s), then state the conclusion about the null hypothesis, as well as the final conclusion that addresses the original claim.

22. Ground vs. Helicopter for Serious Injuries A study investigated rates of fatalities among patients with serious traumatic injuries. Among 61,909 patients transported by helicopter, 7813 died. Among 161,566 patients transported by ground services, 17,775 died (based on data from “Association Between Helicopter vs Ground Emergency Medical Services and Survival for Adults With Major Trauma,” by Galvagno et al., Journal of the American Medical Association, Vol. 307, No. 15). Use a 0.01 significance level to test the claim that the rate of fatalities is higher for patients transported by helicopter.

a. Test the claim using a hypothesis test.

b. Test the claim by constructing an appropriate confidence interval.

c. Considering the test results and the actual sample rates, is one mode of transportation better than the other? Are there other important factors to consider?

Definition Definition Measure of central tendency that is the value that occurs most frequently in a data set. A data set may have more than one mode if multiple categories repeat an equal number of times. For example, in a data set with five item—3, 5, 5, 29, 473—the mode is 5 because it occurs twice and no other value occurs more than once. On a histogram or bar chart, the element with the highest bar represents the mode. Therefore, the mode is sometimes considered the most popular option. The mode is useful for nominal or categorical data (e.g., the most common color car that users purchase), but it is problematic for continuous data because it is more likely not to have any value that is more frequent than the other.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9.1, Problem 21BSC

Chapter 9.1, Problem 23BB

Students have asked these similar questions

Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…

What is the standard scores associated to the left of z is 0.1446

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…

Chapter 9 Solutions

MYLAB ELEMENTARY STATISTICS

Ch. 9.1 - Verifying Requirements In the largest clinical...Ch. 9.1 - Verifying Requirements In the largest clinical...Ch. 9.1 - Hypotheses and Conclusions Refer to the hypothesis...Ch. 9.1 - Using Confidence Intervals a. Assume that we want...Ch. 9.1 - Interpreting Displays. In Exercises 5 and 6, use...Ch. 9.1 - Treating Carpal Tunnel Syndrome Carpal tunnel...Ch. 9.1 - Testing Claims About Proportions. In Exercises...Ch. 9.1 - Accuracy of Fast Food Drive-Through Orders In a...Ch. 9.1 - Testing Claims About Proportions. In Exercises...Ch. 9.1 - Testing Claims About Proportions. In Exercises...

Knowledge Booster

$Statistics$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Solution Summary: The author explains the null hypothesis and alternative hypothesis, and states the conclusion that the rate of fatalities is higher for patients transported by helicopter

Concept explainers

Videos

Want to see the full answer?

Chapter 9 Solutions