Question

3. In the last decade, economic challenges have forced many parents to financially support their adult children. As an employee of the Bureau of Statistics for the U.S. Government, you have been tasked with determining if this percentage has decreased during the Trump administration. Before President Trump took office, it was known that 79% of parents supported their adult children in some fashion. You plan to conduct a study of n random adults whose parents are stil living and find out what percentage still receive some financial support from their parents. You plan to use α 0.03 in your hypothesis test, and want a power of (at least) 0.90 so that your results are trustworthy. What is smallest n could be if the true current percentage of adults supported by their parents is actually 76%? You must include a single picture with two distributions and appropriate areas shaded as part of your answer

Answer 1

Answer: -- Ho:p= 079 Date:--25/5/2019 Ha: p<0.79 power of test to reject the null hypothesis when it is false p^< 079-z" sqrt(0.79 * 0.21 / n) for alpha 0.03 z = 1.88079 power-P(p^ < 079-188079" sato79" 021 / n) l p-076) = P(Z < (079-1.88079 * sqrt(0.79 * 0.21 / n)-0.76) /sqrt(076 * 0.24/n)) = 0.9 P(Z-z) =0.9 z 1.282 hence (079-188079 * sqrt(079 * 0.21 / n)-0.76) /sqrt(076 * 0.24/n) = 1.282 n = 1917.22 hence n = 1918