According to labour statistics, 3.8% of recent college graduates are unemployed in Canada. An Ontario survey...
According to labour statistics, 3.8% of recent college graduates are unemployed in Canada. An Ontario survey reported that 171 out of 5000 recent college graduates were unemployed in December of 2019. Which of the following tests should be performed to determine whether the unemployment rate for college graduates is lower in Ontario compared to the national rate? Assume that all data assumptions are met.
Homework Answers
The appropriate test would be left tailed Z-test for proportion.
The hypothesis are
Th test statistic is,
n = 5000, Po = 171/5000
Fixing a significance level of 5%, we have
| Data | |
| Null Hypothesis p = | 0.038 |
| Level of Significance | 0.05 |
| Number of Items of Interest | 171 |
| Sample Size | 5000 |
| Intermediate Calculations | |
| Sample Proportion | 0.0342 |
| Standard Error | 0.0027 |
| Z Test Statistic | -1.4054 |
| Lower-Tail Test | |
| Lower Critical Value | -1.6449 |
| p-Value | 0.0800 |
| Do not reject the null hypothesis |
Hence we can conclude that the unemployment rate for college graduates is not lower in Ontario compared to the national rate
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