Smoking and Economics, Essay Example

Part 1- The Hypothesis

“The Centers for Disease Control and Prevention (CDC) reported that 46 million US adults were current smokers in 2008 (the most recent year for which numbers are available). This is 20.6% of all adults (23.1% of men, 18.3% of women) – about 1 out of 5 people. The claim is tested at the 5% level of significance.” (Cigarette Smoking)
P= 20.6% of adults smoke

H0 : p ? .206 The percentage of adults who smoke may be less than 20.6%. OR The Centers for Disease Control and Prevention’s claim appears to be not correct.
Ha: p > .206 The percentage of adults who smoke is more than 20.6%. OR The Centers for Disease Control and Prevention’s claim is correct.

Part 2- The ? Level

? = p < .206

Part 3 – The Test Statistic 

z = p?p0po(1?po)n =20.6
Part 4 – The Rejection Region
Ha = p > .206
Part 5 – The Conclusion
Ho is correct.

Works Cited

“Cigarette Smoking.” American Cancer Society :: Information and Resources for  Cancer: Breast, Colon, Prostate, Lung and Other Forms. N.p., n.d. Web. 21 July 2010. <http://www.cancer.org/Cancer/CancerCauses/TobaccoCancer/CigaretteSmoking/cigarette-smoking-who-and-how-affects-health>.