A Major Issue Facing Many States Is Whether to Legalize

question 74

Multiple Choice

A major issue facing many states is whether to legalize casino gambling.Suppose the governor of one state believes that more than 55% of the state's registered voters would favor some form of legal casino gambling.However,before backing a proposal to allow such gambling,the governor has instructed his aides to conduct a statistical test on the issue.To do this,the aides have hired a consulting firm to survey a simple random sample of 300 voters in the state.Of these 300 voters,175 actually favored legalized gambling. State the appropriate null and alternative hypotheses.

• A)H₀ : p = 0.58 H_a : p ≠ 0.58
• B)H₀ : p ≤ 0.55 H_a : p > 0.55
• C)H₀ : p = 0.55 H_a : p ≠ 0.55
• D)H₀ : p ≤ 0.58 H_a : p > 0.58

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Definitions:

Adverse Selection

A situation in which one party in a transaction has more information than the other, typically leading to an inefficient market outcome.

Health Care Costs

The expenses related to maintaining the health of individuals, including medical services, medications, and treatments.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Health Care Expenditures

The total amount of money spent by individuals, insurance companies, and governments on health care services and products.