In Testing the Hypotheses:
H₀: P₁ - P₂ = 0 $\neq$

question 13

Essay

In testing the hypotheses:
H₀: p₁ - p₂ = 0.10
H₁ : p₁ - p₂ $\neq$ ? 0.10
we find the following statistics:
n₁ = 150, x₁ = 72.
n₂ = 175, x₂ = 70.
a. What is the p-value of the test?
b. Briefly explain how to use the p-value to test the hypotheses, at a 1% level of significance.

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Definitions:

Recessions

Periods of economic downturn when output and employment are falling, typically defined as two consecutive quarters of declining gross domestic product.

Consumer Price Index

An index that calculates the overall average price of a range of consumer goods and services, which includes transportation, food, and healthcare provisions.

Overstate

To overstate means to describe or value something in a way that is excessively high or inflated beyond its true worth.

Inflation

How quickly the average price level of goods and services escalates, resulting in reduced purchasing ability.