Question

Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unemployment rate drop and discuss whether there is enough information to determine statistical significance, which Hypothesis Test you would use, and what additional information you would need if any. Support your response with specific examples and a reference. In replies to peers, discuss whether you agree or disagree with their assessments, justify your response, and state which other specific hypothesis tests could be used to test the significance of the drop.

Answer 1

Answer:

We do not have sufficient information

Explanation:

From this question we do not have sufficient information to test how significant this claim by the mayor is. This mayor has only given us the estimated proportion of the drop in unemployment rate. We will need to have more data to carry out hypothesis testing but these were not given.

Here is an example

Let's say n = size = 500

and 51% are unemployed

51/500*100 = 10.2%

The size of the population is what would tell us if the change from 10.5 to 10.4 percent is significant or not.