A health insurance company wants to determine if more than 25% of US residents have been to a hospital emergency room within the past year. It was found that in a sample of 1000 people, 28% indicated that they had been to an emergency room within the past year. With a significance level of 0.01, is there evidence to suggest that the proportion of US residents that have been to the emergency room in the past year is actually higher than 25%?
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.
A health insurance company wants to determine if more than 25% of US residents have been to a hospital emergency room within the past year. It was found that in a sample of 1000 people, 28% indicated that they had been to an emergency room within the past year. With a significance level of 0.01, is there evidence to suggest that the proportion of US residents that have been to the emergency room in the past year is actually higher than 25%?
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