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:

Short Run

A period during which at least one factor of production is considered fixed, typically used to describe a timeframe in which firms cannot alter plant capacity.

Money Supply Growth

An increase in the total amount of money in circulation or in the economy, often indicated by measures such as M1, M2, and M3.

Inflation Rate

The surge rate of the general price level in goods and services, leading to a decline in the ability to afford purchases.

Unemployment

The situation where individuals who are capable of working and willing to work are unable to find suitable employment.