In Testing the Hypotheses

question 56

Essay

In testing the hypotheses:
H0: p1 - p2 = 0
HA : p1 - p2 ≠ 0,
we find the following statistics:
n1 = 150, x1 = 72.
n2 = 175, x2 = 70.
What conclusion can we draw at the 5% significance level?

---

Definitions:

Quantity Rises

An increase in the amount or number of a particular good or service that is available or produced.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, commodity, or service.

Price Floor

A government or regulatory imposed minimum price for goods or services, intended to prevent prices from falling too low.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically referring to profit or a budgetary surplus.