To begin answering our original question, test the claim that the proportion of children from the low income group that drew the nickel too large is greater than the proportion of the high income group that drew the nickel too large. Test at the 0.1 significance level.

Recall 24 of 40 children in the low income group drew the nickel too large, and 12 of 35 did in the high income group.

a) If we use
L
L
to denote the low income group and
H
H
to denote the high income group, identify the correct alternative hypothesis.

H
1
:
p
L
>
p
H
H
1
:
p
L
>
p
H

H
1
:
p
L
<
p
H
H
1
:
p
L
<
p
H

H
1
:
μ
L
≠
μ
H
H
1
:
μ
L
≠
μ
H

H
1
:
μ
L
>
μ
H
H
1
:
μ
L
>
μ
H

H
1
:
p
L
≠
p
H
H
1
:
p
L
≠
p
H

H
1
:
μ
L
<
μ
H
H
1
:
μ
L
<
μ
H

b) The test statistic value is:

c) Using the P-value method, the P-value is:

d) Based on this, we
Reject
H
0
H
0
Fail to reject
H
0
H
0

e) Which means
There is sufficient evidence to warrant rejection of the claim
The sample data supports the claim
There is not sufficient evidence to support the claim
There is not sufficient evidence to warrant rejection of the claim