Reference no: EM132340193
Hypothesis Testing
Using the crime data, test if the true average annual police funding is $50 per resident at the 5% significance level (this is what most softwares will default to).
Using the crime data, test if the actual mean reported violent crime rate per 100,000 residents is at least 500 at the 10% significance level.
Using the crime data and the a yes/no column previously created that indicates whether the city has at least half of its residents at least 25 years old with 4 years of high school, test if the actual percentage of cities who have at least half of their residents at least 25 years old with 4 years of high school is less than 75% at the 1% significance level .
As before, If you're a bit foggy on hypotheses testing, be sure to watch some quick YouTube videos to refresh yourself on the concepts in them.
Also do a similar exercise with your own data: two tests on a mean and another on a proportion using some yes/no variable either in your data or created as we did above. Vary the significance levels between your tests, using reasonable values as we have done above.
Attachment:- data files.rar