QUESTION 1 Suppose a sample of 200 local vendors is selected as part of a survey conducted by the Ministry of Trade and it is found that 145 of the local vendors make an average income in excess of $ 7 600 per month. a) Suppose that a 97% confidence interval estimate of the proportion of local vendors who make an average income less than N$ 7 600 per month is required. How large a sample should be taken if the desired margin of error is 5%? b) Suppose it has been established from past studies that 75% of local vendors make an average income in excess of N$ 7 600 per month. Use the p-value approach and conduct a hypothesis test at a 1% level of significance to determine whether the proportion of local vendors who make an average income in excess of N$ 7 600 per month differs from the historical level?
QUESTION 1
Suppose a sample of 200 local vendors is selected as part of a survey conducted by the
Ministry of Trade and it is found that 145 of the local vendors make an average income in
excess of $ 7 600 per month.
a) Suppose that a 97% confidence
who make an average income less than N$ 7 600 per month is required. How large a
sample should be taken if the desired margin of error is 5%?
b) Suppose it has been established from past studies that 75% of local vendors make an
average income in excess of N$ 7 600 per month. Use the p-value approach and
conduct a hypothesis test at a 1% level of significance to determine whether the
proportion of local vendors who make an average income in excess of N$ 7 600 per
month differs from the historical level?
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