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1.    The national unemployment rate in a recent month was 4.9 percent. You think the rate may be different in your city, so you plan a sample survey that will ask the same questions as the Current Population Survey.  Consider p as the local employment rate. Identify the null and the alternative hypotheses that you will test to see if the local rate differs significantly from 4.9 percent.


·         H0: p = 0.049, Ha: p < 0.049

·         H0: p = 0.049, Ha: p = 0.049


·         H0: p = 0.049, Ha: p > 0.049


2.       The financial aid office of a university asks a sample of students about their employment and earnings. The report says, “For academic year earnings, a significant difference (P = 0.028) was found between the sexes, with men earning more on the average.”

True or false: The report shows that the difference in earnings in the sample was large enough that it would rarely occur in more than 3 percent of samples drawn from a population in which men’s and women’s average earnings are equal.


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