In City A,7420 people are unemployed in a random sample of 143000 people.In City B,7642 people are unemployed in a random sample of 142000 people.
A)P-value = 0.0214; If there is no difference in the proportions,there is about a 2.14% chance of seeing the observed difference or larger by natural sampling variation.
B)P-value = 0.0107; If there is no difference in the proportions,there is about a 1.07% chance of seeing the observed difference or larger by natural sampling variation.
C)P-value = 0.0214; There is about a 2.14% chance that the two proportions are equal.
D)P-value = 0.0107; There is about a 1.07% chance that the two proportions are equal.
E)P-value = 0.9893; If there is no difference in the proportions,there is about a 98.93% chance of seeing the observed difference or larger by natural sampling variation.

Question

Quizplus · Accepted Answer

The correct choice is A because the p-value in hypothesis testing represents the probability of observing a statistic (or one more extreme) assuming the null hypothesis is true. A p-value of 0.0214 means there is approximately a 2.14% chance of seeing the observed difference or a more extreme difference in unemployment proportions between City A and City B if, in reality, there is no difference in their unemployment rates. This interpretation aligns with the explanation provided in option A.

In City A,7420 People Are Unemployed in a Random Sample