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Hypothesis Testing

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Hypothesis Testing
Opinions of Social Security System

Probability and statistics

August 1 2013

1. The Problem

In an effort to design better advertising campaigns, the public relations department of the Social Security Administration conducted a survey to find out the opinions people in the United States have about the Social Security System. The public relations department collected and analyzed the survey data and claims that 40% of people in the United States think the Social Security system will have money available to provide the benefits they expect for their retirement. Also, they claim that the average age of people in the United States who would say yes to this question when asked is 60 years or older.

The purpose of this study is therefore to examine and test the hypothesis of these claims and determine whether they can be supported or rejected for advertising purposes.

2. The Research Design and Hypothesis

To test the hypothesis, a data table was collected from a survey adapted from Newsweek, by the public relations department of the Social Security Administration. The survey consisted of data from 32 adults ranging in age from 18 to 83.

The study examines the two hypothesis by utilizing the classical method to construct a condition for testing the hypothesis claimed by the public relations department of the Social Security Administration. In this case, the null hypothesis is 40% of the people in the United States think the Social Security system will have money available to provide the benefits they expect for their retirement. The alternative hypothesis is based on the results found from the collected samples,is that more than 40% of the people in the United States think that the Social Security system will have money available to provide the benefits they expect for their retirement. In other words, the null hypothesis

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