Question

The World Bank reports that 1.7% of the US population lives on less than $2 per day. A policy Maker claims that this number is misleading because of variation from state to state and rural to urban. To investigate this, she takes a random sample of a 100 household in Atlanta to compare the national average and find that 2.1% of the Atlanta population lives on less than $2 a day. Select the known alternative hypothetic to test whether atlanta differs significantly from the national percentage

Answer 1

The alternative hypothesis (H1) to test if Atlanta's poverty rate differs from the national average is that the proportion of the Atlanta population living on less than $2 per day is not equal to the national average of 1.7%.

Step-by-step explanation:

The student is considering whether the percentage of the Atlanta population living on less than $2 per day differs significantly from the national average reported by the World Bank.

To test this, we use hypothesis testing in statistics, where we compare observed data to what we would expect under a specific hypothesis. For this case, the null hypothesis (H0) typically states that the proportion of the population living on less than $2 per day in Atlanta is equal to the national average of 1.7%.

The alternative hypothesis (H1) is that the Atlanta proportion is not equal to the national average. Since we are looking for a difference in either direction, we would use a two-sided test.

A proper statistical test like the z-test or chi-square test would be applied to determine if the observed proportion of 2.1% in Atlanta represents a statistically significant difference from the national average.

It's important to note that poverty and cost of living can vary significantly based on location. Therefore, comparing the Atlanta poverty rates with national averages without considering such differences can be misleading.