A recent sample of adults was asked their opinions regarding government spending
ID: 3133328 • Letter: A
Question
A recent sample of adults was asked their opinions regarding government spending on the environment and government spending on cities. The data are in the table below.
Spending on the Environment
Spending on Cities
Increase
Decrease
Increase
108
7
Decrease
159
29
Test whether increased spending is favored in one area. Use a 5% level of significance. 1) Write out the appropriate null hypothesis and the alternative hypothesis; 2) Calculate the test statistic (show your work); 3) Give your conclusion including a comparison to alpha or the critical value.
Spending on the Environment
Explanation / Answer
A recent sample of adults was asked their opinions regarding government spending on the environment and government spending on cities. The data are in the table below.
Spending on the Environment
Spending on Cities
Increase
Decrease
Increase
108
7
Decrease
159
29
Test whether increased spending is favored in one area. Use a 5% level of significance.
Null hypothesis: There is no favor for one area in spending
Alternate hypothesis: There is a favor for one area in spending
McNemar's test is used for this paired data
Chi square = (b-c)2/(b+c) =(159-7)2 / = 139.18
3) Give your conclusion including a comparison to alpha or the critical value.
critical value at 5% level =3.841
Calculated chi square value =139.18 >3.841, the null hypothesis is rejected.
We conclude that there is an increased spending is favored in one area.
Spending on the Environment
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