In Testing the Hypotheses

question 71

Essay

In testing the hypotheses:
H₀: p₁ - p₂ = 0
H₁: p₁ - p₂ ≠ 0,
we find the following statistics:
n₁ = 200, x₁ = 80.
n₂ = 200, x₂ = 140.
What conclusion can we draw at the 10% significance level?

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Definitions:

Good X

A placeholder term often used in economics to denote a specific, but unspecified, commodity or product in theoretical discussions.

Good Y

A placeholder term often used in economics to denote a specific good or product under consideration in a model or theory.

Food Stamps

A government assistance program providing electronic benefits to low-income individuals and families for the purchase of food.

Weekly Income

The total amount of money earned or received by an individual or household within the span of a week.