If We Are Interested in Testing Whether the Proportion of Items

question 49

Multiple Choice

If we are interested in testing whether the proportion of items in population 1 is larger than the proportion of items in population 2, the

• A) null hypothesis should state p₁ - p₂ < 0.
• B) alternative hypothesis should state p₁ - p₂ = 0.
• C) alternative hypothesis should state p₁ - p₂ < 0.
• D) alternative hypothesis should state p₁ - p₂ > 0.

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Definitions:

Loans

Sums of money borrowed that are expected to be paid back with interest by the borrower over a specified period of time.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks and other financial institutions.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money borrowed that is expected to be paid back with interest.