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Author Question: A gaming control board claims that the average household income of those people playing blackjack at ... (Read 106 times)

iveyjurea

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on: Jun 24, 2018
A gaming control board claims that the average household income of those people playing blackjack at casinos is at least 50,000.
 
  Assume that the distribution of household income of those people playing blackjack is normally distributed with a standard deviation of 7,559. Suppose that for a sample of 45 households, it is found that the average income was 48,326. Is the gaming control board incorrect in asserting that the average household income of blackjack players is at least 50,000? Use the 10 per cent significance level.

Question 2

Which of the following can be the null hypothesis for a research study that would employ the chi-square test for independence?
 
  A) H0: gender and SUV ownership are dependent
  B) H0: gender and SUV ownership are independent
  C) H0: gender = SUV ownership
  D) H0: 2gender = 2SUV ownership
Statistics, Data Analysis, and Decision Modeling ¦ Evans ¦ 5th Edition
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Athena23

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Reply #1 on: Jun 24, 2018
Answer to Question 1

H0 :   50,000 against H1 :  < 50,000
Test statistic Z = (48,326 - 50,000 ) / (7,559 / 6.71 ) = -1.485
Since p-value = P(Z < -1.485 ) = 0.0687, we can reject H0 at  = 0.10.
Therefore, there is sufficient evidence to disprove the claim of the gaming control board.

Answer to Question 2

B


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