1. . In a survey of 1000 American adults conducted inApril 2012, 430 reported having gone through an entire week withoutpaying for anything in cash. Test at 1% significance level to seeif this sample provides evidence that the proportion of allAmerican adults going a week without paying cash is greater than40%.
(a) Define the parameter with proper notation. State thenull and alternate hypothesis.
(b) Is it one or two tailed test? Give the direction ifone tailed. What is the level of significance? Give the nullvalue.
(c) Find the best point estimate rounded to threedecimal places, with proper notation.
(d) If we were to draw a 1000 samples randomizationdistribution, each of size 1000, what is the expected shape andcenter of this randomization distribution?
(e) Draw a smooth curve of the randomizationdistribution and shade the area that represents the p- value forthis sample.
(f) Using the following randomization distribution, findthe p-value corresponding to the best point estimate. Describe thestrength of the evidence based on this p-value (scale is 0.0067units between each number).
(g) Based on the p-value what is the formal conclusion?What type of error is made? Describe what that type of error meansin this situation.
(h) Based on the p-value, what is the conclusion in thecontext of the problem? (i) Find p-value for ?Ì‚ =0.45.
