Medicare
an Economist Wishes to Test Whether There Is Any

Short Answer

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.Calculate the standard error of estimate.