posted by .

3 In 1999, a sample of 200 in-store shoppers showed that 42 paid by debit card. In 2004, a sample
of the same size showed that 62 paid by debit card. (a) Formulate appropriate hypotheses to test
whether the percentage of debit card shoppers increased. (b) Carry out the test at รก = .01. (c) Find
the p-value. (d) Test whether normality may be assumed.

  • statistics -

    This problem fits a binomial proportion 2-sample z-test using proportions.

    Ho: p1 = p2
    Ha: p1 < p2 -->one-tailed test (shows a specific direction)

    The formula is:
    z = (p1 - p2)/√[pq(1/n1 + 1/n2)]
    ...where 'n' = sample sizes, 'p' is (x1 + x2)/(n1 + n2), and 'q' is 1-p.

    I'll get you started:
    p = (42 + 62)/(200 + 200) = ? -->once you have the fraction, convert to a decimal (decimals are easier to use in the formula)
    q = 1 - p
    p1 = 42/200
    p2 = 62/200
    Convert all fractions to decimals. Plug those decimal values into the formula and find z. Once you have this value, you will be able to determine the p-value or the actual level of this test statistic by using a z-table. Determine the outcome of the test (whether or not to reject the null). Draw your conclusions from there.

    I hope this will help get you started.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Card Trick

    I know this isnt a school question but I want to know. My friend did this card trick. She shuffled the cards, showed me the bottom one and told me that was my card. Then she showed me a card from the bottom and said is this your card …
  2. Accounting

    Hankco accepts all major bank credit cards, including Omni Bank's, which assesses a 3% charge on sales for using its card. On June 28, Hankco had $4,500 in Omni Card credit sales. What entry should Hankco make on June 28 to record …
  3. statistics

    4. The Pew Research Center reported that 57% of Americans favored the Wall Street bailout of 2008. A random sample of 300 people showed that 155 people favored the bailout. If appropriate, test whether the population proportion of …
  4. econ 112

    A random sample of 400 morning shoppers showed that 130 were men. A random sample of 480 evening shoppers showed 187 to be men. Use a 5% level of significance to test for a significant difference in the proportion of morning and evening …
  5. statistics

    A credit card company estimates that the average credit card balance of Americans is $3,210. A statistics student wants to know whether this is true for citizens of her home town. Which hypothesis test would be most appropriate for …
  6. business statistics

    using empirical formula a company is studying the number of daily debit card purchases. THere were 20 purchases and the probability of a debit card purchase is 0.5. what is the stadnard deviation of the number of debit card purchases
  7. grade 8 math

    elena spent a week at a customer's factory in a different city. she used her debit card 19 times. for 4 of the 19 purchase, she was charged a service fee of $0.50 each. she also withdrew money from an ATM 3 times. she was charged a …
  8. Canadian finances

    which of the following services do banks not provide?
  9. business

    What is debit? ex of debit - debit card and cash
  10. Ramos

    Travis bank charges two dollars or withdrawls at nonbank ATMs and a fee of $2.50 per month for a debit card.last month she paid $10.50 in ATM and debit card fees. How many nonbank withdrawls did she make

More Similar Questions