The Report Describes the Results of a Survey of 739

question 12

Multiple Choice

The report describes the results of a survey of 739 automobile owners age 18 to 29 and 564 automobile owners age 30 to 49 in a certain metropolitan area. Survey participants were asked if they own an automobile that is equipped with an electrical engine; 42% of the automobile owners age 18 to 29 and 36% of the automobile owners age 30 to 49 said "yes". Suppose you want to decide if there is evidence that the proportion of owners of automobiles equipped with electrical engine is different for age 18 to 29 and age 30 to 49.
What is the value of the test statistics and what is the associated P-value? If a significance level of 0.05 is selected for the test, will you reject or fail to reject the null hypothesis?

• A) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• B) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• C) ; ; We fail to reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that there is no evidence the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• D) ; ; We fail to reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that there is no evidence the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• E) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.

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Definitions:

Operating Cash Flow

A measure of the amount of cash generated by a company's normal business operations over a period of time.

Retained Earnings

Retained earnings represent the portion of a company's profit that is retained within the business rather than distributed to shareholders as dividends, often used for reinvestment.

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its earnings.

Loss

The reduction in the financial valuation of an investment, or when expenses exceed the income or total amount invested.