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Respond to the following in a minimum of 175 words:
Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year.
a) Assuming that p equals .60 and the sample size is 1,000, what is the probability of observing a sample proportion that is at least .64?
b) Based on your answer in part a, do you think more than 60 percent of all U.S. households in the income class bought life insurance last year? Explain.
Step 1 - Please find the Standard Deviation of the Proportion
Step 2 - Please find the Z-score
Step 3 - Please find the area of the Curve
Step 4 - Area of the curve is the Probability of finding AT Least 64% of households purchasing a Life Insurance Policy
Identify the IV and DV with their levels of measurement
Identify the research question
State the H1 and Ha (smooth transition since the H1 and Ha are based on the research question)
Pick the Confidence level/level of significance in how strongly you believe your main hypothesis (H1) is true. This will determine your Statistical Critical (i.e. "window of acceptance")
Choose the correct statistical technique, apply and calculate the statistical observation
Based on the statistical calculation (observed behavior) compare it to the Statistical critical (Expected behavior) then accept or reject the Hypothesis (H1) (Map out on bell curve)
State your conclusion about the data in simple terms.
I personally like this 7-step process much better as it is more comprehensive
