Discuss the below:
Q1: Nationally the proportion of American households with income above $100,000 is 10%. A researcher in State of California finds that out of a sample of 300 households , 35 have income above $ 100,000. Can it be concluded from this sample that the proportion of households in california with income of $100,000 exceeds the proportion of homes eith income of $100,000 in the rest of the country.Test to a significance of 10%.Calculate p value. Which type of error- Type I or II.What are the consequences of commiting that type of error.
Based on the definition of a Type I or Type II error, which error could have been commited based on the results of the hypothesis test. What are the potential consequences of committing that error for this situation.
Q2: A mortgage broker owns two offices. He wants to know if there is a difference in the average amount of fees collected per mortgage between the two offices.He colllects the following information:
Office 1 Office 2
n1=30 n2=45
x1=$2,200 X2=$1500
s1=$500 s2=$750
Calculate a 95% confidence intervals on the difference between the average fees collected at office 1 versus office 2