The U.S. Census Bureau conducts annual surveys to obtain information on the perc

Question

The U.S. Census Bureau conducts annual surveys to obtain information on the percentage of the voting-age population that is registered to vote. Suppose that 423 employed persons and 443 unemployed persons are independently and randomly selected, and that 205 of the employed persons and 163 of the unemployed persons have registered to vote. Can we conclude that the percentage of employed workers (p_1), who have registered to vote, exceeds the percentage of unemployed workers (p_2,).who have registered to vote? Use a significance level of alpha -0.1 for the test. Compute the value of the z test statistic.

Explanation / Answer

It is a right tailed z test.

Here alpha=0.1.

The critical value is 1.28. (Using Excel , -Norminv(0.1,0,1))

Thus the decision rule is,

" Reject H0 if z > 1.28 "

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