Use the Traditional Method to Test the Given Hypothesis

question 73

Essay

Use the traditional method to test the given hypothesis. Assume that the samples are independent and that they have been randomly selected
-In a random sample of 500 people aged 20-24, 22% were smokers. In a random sample of 450 people aged 25-29, 14% were smokers. Test the claim that the proportion of smokers in the two age groups is the same. Use a significance level of 0.01.

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Definitions:

Consumer Surplus

The divergence between the price customers are willing to pay and the price they actually pay for a good or service.

Willingness to Pay

The maximum amount an individual is prepared to spend to acquire a good or service or to avoid something undesirable.

Consumer Surplus

The gap between the amount consumers are prepared to spend on a good or service and the actual price they pay, signifying consumers' advantage.

Refrigerator

An appliance used to keep food and drinks cool and preserved by maintaining a temperature below the ambient level.