Homeowners 2009 In 2009, the U.S. Census Bureaureported that 67.4% of American families owned theirhomes. Census data reveal that the ownership rate in onesmall city is much lower. The city council is debatinga plan to offer tax breaks to first-time home buyers inorder to encourage people to become homeowners. Theydecide to adopt the plan on a 2-year trial basis and use thedata they collect to make a decision about continuing thetax breaks. Since this plan costs the city tax revenues, theywill continue to use it only if there is strong evidence thatthe rate of home ownership is increasing.a) In words, what will their hypotheses be?b) What would a Type I error be?c) What would a Type II error be?d) For each type of error, tell who would be harmed.e) What would

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 13CYU
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Homeowners 2009 In 2009, the U.S. Census Bureau
reported that 67.4% of American families owned their
homes. Census data reveal that the ownership rate in one
small city is much lower. The city council is debating
a plan to offer tax breaks to first-time home buyers in
order to encourage people to become homeowners. They
decide to adopt the plan on a 2-year trial basis and use the
data they collect to make a decision about continuing the
tax breaks. Since this plan costs the city tax revenues, they
will continue to use it only if there is strong evidence that
the rate of home ownership is increasing.
a) In words, what will their hypotheses be?
b) What would a Type I error be?
c) What would a Type II error be?
d) For each type of error, tell who would be harmed.
e) What would

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