Nationally, 60% of American own American cars, 29% of Americans own Asian cars, and the remaing Americans own non-Asian foreign cars. A survey of 206 people in California finds that 51% own American cars, 31% own Asian cars, and the remaining own non-Asian foreign cars. When testing (at the 10% level of significance) whether the proportions in California are the same as the national proportions, what is the test statistic (please

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QUESTION 3
Nationally, 60% of American own American cars, 29% of Americans own Asian cars, and the remaing Americans
own non-Asian foreign cars. A survey of 206 people in California finds that 51% own American cars, 31% own
Asian cars, and the remaining own non-Asian foreign cars. When testing (at the 10% level of significance)
whether the proportions in California are the same as the national proportions, what is the test statistic (please
round your answer to 3 decimal places)
Transcribed Image Text:QUESTION 3 Nationally, 60% of American own American cars, 29% of Americans own Asian cars, and the remaing Americans own non-Asian foreign cars. A survey of 206 people in California finds that 51% own American cars, 31% own Asian cars, and the remaining own non-Asian foreign cars. When testing (at the 10% level of significance) whether the proportions in California are the same as the national proportions, what is the test statistic (please round your answer to 3 decimal places)
Expert Solution
Step 1

Given that-

P(American car | American) = 0.6

P(Asian car| American) = 0.29

P( non-Asian foreign car |American) = 1-0.6-0.29 = 0.11

For the above national percentage, the expected values are computed as

Expected value for American cars = 206*0.6 = 123.6

Expected value for Asian cars = 206*0.29 = 59.74

Expected value for Asian foreign cars = 206*0.11 = 22.66

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