A business statistician wishes to determine whether current unemployment rates differ between former communist countries and European/Asian nations that have not been under communist control. A sample of 10 countries each was randomly chosen from all eligible countries. The data are as follows:$\begin{array} { c c }
\hline \text { Former Communist } & \text { Not Former Communist } \
\text { (\%) } & \text { (\%) } \
\hline 23 & 12 \
13 & 8 \
33 & 9 \
21 & 14 \
17 & 7 \
24 & 8 \
12 & 10 \
18 & 11 \
27 & 12 \
16 & 7 \
\hline
\end{array}$
-The correct statistical decision would be
A)retain the null hypothesis
B)reject the null hypothesis
C)retain the alternative hypothesis
D)reject the directional null hypothesis

Question

A business statistician wishes to determine whether current unemployment rates differ between former communist countries and European/Asian nations that have not been under communist control. A sample of 10 countries each was randomly chosen from all eligible countries. The data are as follows:$\begin{array} { c c } 
\hline \text { Former Communist } & \text { Not Former Communist } \
\text { (\%) } & \text { (\%) } \
\hline 23 & 12 \
13 & 8 \
33 & 9 \
21 & 14 \
17 & 7 \
24 & 8 \
12 & 10 \
18 & 11 \
27 & 12 \
16 & 7 \
\hline
\end{array}$
-The correct statistical decision would be
A)retain the null hypothesis
B)reject the null hypothesis
C)retain the alternative hypothesis
D)reject the directional null hypothesis

Quizplus · Accepted Answer

To determine whether there is a significant difference in unemployment rates between former communist countries and non-communist countries, a two-sample t-test can be applied to the data provided. Without performing the exact calculations here, the significant differences in the sample means (as suggested by the provided data) likely indicate that we can reject the null hypothesis (which would typically state that there is no difference in unemployment rates between the two groups). Rejecting the null hypothesis suggests that there is a statistically significant difference in unemployment rates between former communist countries and those that were not under communist control.

A Business Statistician Wishes to Determine Whether Current Unemployment Rates