A business statistician wishes to determine whether current unemployment rates differ between former communist countries and European/Asian nations that have not been under communist control. A sample of 10 countries each was randomly chosen from all eligible countries. The data are as follows: $\begin{array} { c c } \hline \text { Former Communist } & \text { Not Former Communist } \\\text { (\%) } & \text { (\%) } \\\hline 23 & 12 \\13 & 8 \\33 & 9 \\21 & 14 \\17 & 7 \\24 & 8 \\12 & 10 \\18 & 11 \\27 & 12 \\16 & 7 \\\hline\end{array}$
-The appropriate conclusion of this statistical analysis would be

Question

A business statistician wishes to determine whether current unemployment rates differ between former communist countries and European/Asian nations that have not been under communist control. A sample of 10 countries each was randomly chosen from all eligible countries. The data are as follows:$\begin{array} { c c } 
\hline \text { Former Communist } & \text { Not Former Communist } \
\text { (\%) } & \text { (\%) } \
\hline 23 & 12 \
13 & 8 \
33 & 9 \
21 & 14 \
17 & 7 \
24 & 8 \
12 & 10 \
18 & 11 \
27 & 12 \
16 & 7 \
\hline
\end{array}$
-The appropriate conclusion of this statistical analysis would be
A)The mean unemployment rate (20.4%) in former communist countries is significantly greater (p < .001) than the mean unemployment rate (9.8%) in countries not formerly under communist control.
B)The mean unemployment rate (9.8%) in former communist countries is significantly greater (p < .001) than the mean unemployment rate (20.4%) in countries not formerly under communist control.
C)The mean unemployment rate (20.4%) in former communist countries is significantly greater (p < .05) than the mean unemployment rate (9.8%) in countries not formerly under communist control.
D)The mean unemployment rate (20.4%) in former communist countries is not significantly greater (p > .05) than the mean unemployment rate (9.8%) in countries not formerly under communist control.

Quizplus · Accepted Answer

The mean unemployment rates calculated from the data provided are 20.4% for former communist countries and 9.8% for countries not formerly under communist control. The statement in choice A correctly identifies the direction of the difference and implies a statistical significance at a level of p < .001, which suggests a strong evidence against the null hypothesis (that there is no difference in unemployment rates between the two groups). Without performing the actual statistical test here, the information given suggests this interpretation.

A Business Statistician Wishes to Determine Whether Current Unemployment Rates