BFW PublishersAn article in Forbes magazine claims that half of the adults in the United States do not have any savings. To substantiate thatclaim, the company, GoBanking, asked a random sample of 500 adults around the country how much money they have insavings and found that 265, or 53% of them, had no savings.To determine if these data provide convincing evidence that more than half of the adults in the United States do not have anysavings, 200 simulated SRSS were selected. Each dot in the graph shows the number of adults that have no savings in asimulated SRS of 500 adults, assuming that each person has a 50% chance of not having any savings. The sample result showedthat 265 out of 500 adults had no savings. The simulation shows the number of adults out of 500 that we can expect to have nosavings if 50% is true.220 225 230 235 240 245 250 255 260 265 270 275 280Simulated sample count of adults that do not have any savingsBased on the results of the simulation, is thereconvincing evidence that at least 50% of adults do nothave any savings?Yes, based on the simulation, only 2 of thesimulated samples show 265 out of 500 adults thathave no savings. This is highly unlikely, andtherefore provides convincing evidence that at least50% of adults do not have any savings.No, based on the simulation, 12% of the simulatedsamples show 265 or more out of 500 adults have nosavings. Because it is not surprising to get a samplecount of 265 or more out of 500 when thepopulation proportion is 50%, we do not haveconvincing evidence that at least 50% of adults donot have any savings.No, the simulation is centered near 250, which is50% of 500, just as claimed by Forbes magazine.This means that there is not convincing evidencethat at least 50% of adults do not have any savings.Yes, based on the simulation, 12% of the simulatedsamples show 265 or more out of 500 adults have nosavings. Because it is surprising to get a samplecount of 265 or more out of 500 when thepopulation proportion is 50%, we have convincingevidence that at least 50% of adults do not have anysavings.Yes, the simulation is centered near 250, which is50% of 500, just as claimed by Forbes magazine.This provides convincing evidence that at least 50%of adults do not have any savings.

Question

Accepted Answer

Given claim: At least 50% of the adults do not have any savings.
Null Hypothesis:
H0: At least 50%…