Population
in an Effort to Test the Hypothesis That the Proportion

question 10

Essay

Population
In an effort to test the hypothesis that the proportion of home ownership in the state of Delaware is different than the national proportion,the following data was collected.
$$\begin{array} { | l | c | c | } \hline \text { Population } & \text { Number of Home Owners } & \text { Sample Size } \\\hline \text { Delaware } & 310 & 500 \\\hline \text { Nation } & 390 & 600 \\\hline\end{array}$$
-Use $\alpha$ = 0.01.State the decision rule in terms of the critical value.

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Definitions:

Risk-free Rate

The estimated rate of profit for a no-risk investment, usually depicted by the earnings from government securities.

American Call

An option contract that gives the holder the right to buy a specific asset at a set price anytime before the expiration date.

Expiration Date

The predefined date after which an option or other financial contract becomes invalid and the right to exercise it ceases.

Conversion Premium

The additional amount above the par value that an investor pays to convert a convertible security (like a bond) into a predetermined number of shares of common stock.