\"It\'s clearly the economy,\" says Kendra Phillips of Awesome Vet Advisers, in
ID: 3303528 • Letter: #
Question
"It's clearly the economy," says Kendra Phillips of Awesome Vet Advisers, in Colorado Springs, CO. She presented the findings at the vets association's national meeting in San Diego (in August 2012). "The percentage of households that owned at least one pet was down 2.4%." That's 2.8 million households that became petless. "It's a significant number," she says.
In 2012, 30.4% of U.S. households reported owning a cat. This is a drop from 32.4% reported in 2007. Ms. Phillips feels that is "a significant number," but her friend, Alyssa, wondered whether this drop in cat ownership statistically significant.
Alyssa noticed that the data that Kendra was quoting from was based on a survey of 10,000 households. Alyssa calculated the following confidence interval: 0.324 - (1.96 x SQRT (0.324 x 0.676 / 10,000) n 0.324 + (1.96 x SQRT (0.324 x 0.676 / 10,000) --> 0.3148 n 0.3332 .
What should Alyssa conclude about whether the drop from 32.4% to 30.4% is statistically significant?
Explanation / Answer
as above confidence interval does not contain 0.304 (30.4%) as a possible value for population proportion ; therefore the test is significant,
hence we have suffciient evidnce at 0.05 level that the drop from 32.4% to 30.4% is statistically significant.
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