A Business Statistician Wishes to Determine Whether Current Unemployment Rates

question 8

Multiple Choice

A business statistician wishes to determine whether current unemployment rates differ between former communist countries and European/Asian nations that have not been under communist control. A sample of 10 countries each was randomly chosen from all eligible countries. The data are as follows: $\begin{array} { c c } \hline \text { Former Communist } & \text { Not Former Communist } \\\text { (\%) } & \text { (\%) } \\\hline 23 & 12 \\13 & 8 \\33 & 9 \\21 & 14 \\17 & 7 \\24 & 8 \\12 & 10 \\18 & 11 \\27 & 12 \\16 & 7 \\\hline\end{array}$
-The derived t value for this problem is

• A)7.338
• B)4.816
• C)11.373
• D)12.000

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Definitions:

Normal Curve

A symmetric, bell-shaped curve representing the distribution of a set of data where most occurrences take place near the mean and probabilities for values taper off equally on both sides.

Continuity Correction

An adjustment made when approximating a discrete distribution with a continuous distribution.

Normal Approximation

A method of estimating the distribution of a sample statistic using the normal distribution, often applied when the sample size is large.

Binomial

Pertaining to a probability distribution or experiment where each trial has two possible outcomes.