A newspaper story claims that more houses are purchased by singles now than singles 5 years ago
A newspaper story claims that more houses are purchased by singles now than singles 5 years ago. To test this claim, two studies were conducted on the buying habits of singles over the past 5 years. In the first study, 500 house purchases in the current year were randomly selected and 150 of those were made by singles. In the second study, again 500 house purchases were randomly selected from 5 years ago and 117 of those were made by single people. Test the newspaper’s claim using a 0.05 level of significance. Is there sufficient evidence to support the newspaper’s claim? Let singles now be Population 1 and let singles 5
years ago be Population 2.
Answer the following questions.
a. State the null and alternative hypotheses for the test. Fill in the blank below.
b. Compute the value of the test statistic. Round your answer to two decimal places.
c. Make the decision and state the conclusion in terms of the original question.