Families in Poverty. In 2012, 15.9%of all U.S. families had incomes below the poverty level, as reported by the U.S. Census Bureau in American Community Survey. During that same year, of 400randomly selected Wyoming families, had incomes below the poverty level. At the 5%significance level, do the data provide sufficient evidence to conclude that, in2012, the percentage of families with incomes below the poverty level was lower among those living in Wyoming than among all U.S. families?

Short Answer

Expert verified

At the5% level, the test results are statistically significant.

As a result, no, the data does not provide adequate evidence to conclude that the percentage of families with incomes below the poverty line was lower in Wyoming than in the rest of the United States.

Step by step solution

01

Given information

The significance level is 5%

The number of families is n=400

p0=0.159

Income below the poverty level isx=50

02

Explanation

The sample proportion is calculated as

p^=xn

p^=50400

=0.125

Calculate the value of np0

np0=(400)(0.159)

role="math" localid="1651415199813" =63.6

Calculate the value of

n1-p0=(400)(1-0.159)

=336.4

Both the values are greater than 5.

So one proportion z-test is appropriate to use.

The null hypothesis is

H0:p0=0.159

The alternate hypothesis is

H0:p0<0.159

The expression for zis

z=p^-p0P01-p0n

The zvalue is calculated as

z=0.125-0.1590.159(1-0.159)400

=-0.0340.0183

=-1.86

When α=0.05the tail is left tailed

The critical value of zfrom the standard table is

z0.05=-1.645

The test statistic is in the negative range. As a result, the hypothesis H0is ruled out.

At the5% level, the test results are statistically significant.

As a result, no, the data does not provide adequate evidence to conclude that the percentage of families with incomes below the poverty line was lower in Wyoming than in the rest of the United States.

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