Find the Value of the Test Statistic Z Using Z $$z = \frac { \hat { p } - p } { \sqrt { \frac { p q } { n } } }$$

question 22

Multiple Choice

Find the value of the test statistic z using z $$z = \frac { \hat { p } - p } { \sqrt { \frac { p q } { n } } }$$
-A claim is made that the proportion of children who play sports is less than 0.5, and the sample statistics include n = 1899 subjects with 30% saying that they play a sport.

• A) -17.43
• B) -35.58
• C) 17.43
• D) 35.58

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Definitions:

Compensating Variation

A measure of the change in income that would leave a consumer's utility unchanged before and after a change in price or economic environment.

Consumption

The act of using goods and services for personal needs or to generate utility.

Utility Function

A mathematical representation of how different combinations of goods or services can result in varying levels of satisfaction or utility to a consumer.

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive from the purchase.