A Politician Has Commissioned a Survey of Blue-Collar and White-Collar

question 58

Essay

A politician has commissioned a survey of blue-collar and white-collar employees in her electorate. The survey reveals that 286 out of 542 blue-collar workers intend to vote for her in the next election, whereas 428 out of 955 white-collar workers intend to vote for her.
a. Can she infer at the 5% level of significance that the level of support differs between the two groups of workers?
b. What is the p-value of the test? Explain how to use it to test the hypotheses.

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Definitions:

Beta Coefficient

An index that gauges the degree of variability or specific risk associated with a security or portfolio in relation to the entire market.

Market Risk

The risk of losses in financial markets due to movements in market prices, affecting a wide range of assets uniformly.

Behavioural Finance

A field of study that combines psychological theories with conventional economics to explain why people make irrational financial decisions.

Securities Mispricing

A situation where a financial security is valued either above or below its true intrinsic value due to market inefficiencies, creating investment opportunities.