Question 9.303

37. Latino Household Income. The U.S. Census Bureau reported that 15.3% of Latino families had household incomes of at least $75,000. We are interested in whether the population proportion has changed, using the critical-value method and level of significance . Suppose that a random sample of 100 Latino families reported 23 with household incomes of at least $75,000.

  1. Is it appropriate to perform the test for the proportion? Why or why not?
  2. Perform the appropriate hypothesis test.

9.5.37

(a) Yes. We have and . (b) Reject if . . . Since the is not , we do not reject . There is insufficient evidence that the population proportion of Hispanic families that had a household income of at least $75,000 is not equal to 0.153.