39. Living with the Parents. The National Association of Home Builders reported that 57% of young people ages 18–24 were living with their parents. Suppose a sample of 100 young people ages 18–24 showed 60 who were living with their parents. Test, using level of significance , whether the population proportion has changed.
9.5.39
Both and , so the conditions for using the test for proportions are met.
Step 1 We reject if the .
Step 2
Step 3
Step 4 The is not , so we do not reject . There is insufficient evidence at level of significance that the population proportion of young people ages 18–24 who are living with their parents differs from 57%.