Find probability of not rejecting a false null hypothesis

Reference no: EM131167645

An economic researcher wants to know whether he can reject the null hypothesis, at the 10% significance level, that no more than 20% of the households in Pennsylvania make more than $70,000 per year.

a. If 200 Pennsylvania households are chosen at random, how many of them would have to be earning more than $70,000 per year to allow the researcher to reject the null hypothesis?

b. Assuming that the true proportion of all Pennsylvania households with annual incomes of at least $70,000 is 0.217, find the probability of not rejecting a false null hypothesis when the sample size is 200.

Reference no: EM131167645

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