Essay
The serious delinquency rate measures the proportion of homes that are well behind on their mortgage payments. A real estate investor is trying to decide in which of two neighborhoods in Phoenix to buy an investment property. He is trying to decide if the serious delinquency rate differs between the two neighborhoods. He took a sample of 70 homes in neighborhood 1 and found 14 homes were seriously delinquent. He took a sample of 80 homes in neighborhood 2 and 10 homes were seriously delinquent.
A) Specify the competing hypotheses to determine if the delinquency rates in the two neighborhoods are equal.
B) Calculate the value of the test statistic and the p-value.
C) Make a conclusion at the 10% significance level. How should the delinquency rate influence the investor's decision?
Correct Answer:
Verified
a. H0: p1 − p2 = 0, HA: p1 − p2 ≠ 0
...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q17: A tutor promises to improve GMAT scores
Q18: For a hypothesis test about the difference
Q19: A particular personal trainer works primarily with
Q20: According to a recent survey, women chat
Q21: A tutor promises to improve GMAT scores
Q23: In August 2010, Massachusetts enacted a 150-day
Q24: A left-tailed test determines whether μ<sub>1</sub> is
Q25: The statistical inference concerning the difference between
Q26: A bicycle manufacturer makes downhill mountain bikes
Q27: A farmer uses a lot of fertilizer