Medicare
an Economist Wishes to Test Whether There Is Any

question 69

Essay

Medicare
An economist wishes to test whether there is any difference in the proportion of households receiving Medicare for white households with less than $5,000 income per year and white households with $15,000 or more income per year.A random sample from households with less than $5,000 income per year is taken,and a random sample of households with $15,000 or more income is taken.The results of the samples are: $$\begin{array} { | l | c c | } \hline & \text { Less than } \$ \mathbf { 5 , 0 0 0 } & \mathbf { \$ 1 5 , 0 0 0 } \text { or more } \\\hline \text { Sample size } & 200 & 150 \\\text { Medicare Recipients } & 157 & 139 \\\hline\end{array}$$
-Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in proportions exists.What are the null and alternative hypotheses?
H₀: ____________________
H₁: ____________________

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Definitions:

Unit Elastic

A scenario in which a change in price by a certain percentage results in an identical percentage change in the amount demanded or supplied.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price during a specified time period.

Price of Radios

The amount of money required to purchase a radio, influenced by factors such as brand, technology, and market demand.

Very Elastic Demand

A situation where the demand for a product or service significantly changes in response to changes in its price.