Hypothesis Testing About Americans Estimating Foreign Aid In Federal Budget

Question

In a simple random sample of 144 Americans, respondents were asked to estimate the share of the U.S. federal budget devoted to foreign aid. The average of the responses was 24.8%, with a standard deviation in responses of 12%. The actual share of the U.S. federal budget devoted to foreign aid is 0.8%1.

(a) Test the hypothesis that Americans, on average, correctly estimate the share of the federal budget devoted to foreign aid. Report the Z-statistic. Compare the p-value to 1%.

(b) Did you have to bootstrap the standard error? Why or why not? (Hint: think about the box model underlying this sample.)

(c) Suppose the same average were observed in a poll of 30 Americans. Would you expect the p-value to be bigger or smaller than the answer from part (A) above?2

  1. 1. These numbers have been modified slightly to make the arithmetic easy and round. But only slightly: this is pretty close to the discrepancy between beliefs about the U.S. foreign aid budget and the actual foreign aid budget.
  2. 2. You need not calculate a new Z statistic to answer this question.

 

Summary

The question belongs to Statistics and it discusses about testing a hypothesis that Americans can correctly estimate the share of federal budget devoted to foreign aid.

Total Word Count 199

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.