Solution Found!
You Explain It! New Deal Policies In response to the Great
Chapter 5, Problem 21AYU(choose chapter or problem)
Problem 21AYU
You Explain It! New Deal Policies In response to the Great Depression, Franklin D. Roosevelt enacted many New Deal policies. One such policy was the enactment of the National Recovery Administration (NRA), which forced business to agree to wages and prices within their particular industry. The thought was that this would encourage higher wages among the working class, thereby spurring consumption. In a Gallup survey conducted in 1933 of 2025 adult Americans, 55% thought that wages paid to workers in industry were too low. The margin of error was 3 percentage points with 95% confidence. Which of the following represents a reasonable interpretation of the survey results? For those that are not reasonable, explain the flaw.
(a) We are 95% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
(b) We are 92% to 98% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
(c) We are 95% confident the proportion of adult Americans during the Great Depression who believed wages paid to workers in industry were too low was between 0.52 and 0.58.
(d) In 95% of samples of adult Americans during the Great Depression, the proportion who believed wages paid to workers in industry were too low is between 0.52 and 0.58.
Questions & Answers
QUESTION:
Problem 21AYU
You Explain It! New Deal Policies In response to the Great Depression, Franklin D. Roosevelt enacted many New Deal policies. One such policy was the enactment of the National Recovery Administration (NRA), which forced business to agree to wages and prices within their particular industry. The thought was that this would encourage higher wages among the working class, thereby spurring consumption. In a Gallup survey conducted in 1933 of 2025 adult Americans, 55% thought that wages paid to workers in industry were too low. The margin of error was 3 percentage points with 95% confidence. Which of the following represents a reasonable interpretation of the survey results? For those that are not reasonable, explain the flaw.
(a) We are 95% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
(b) We are 92% to 98% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
(c) We are 95% confident the proportion of adult Americans during the Great Depression who believed wages paid to workers in industry were too low was between 0.52 and 0.58.
(d) In 95% of samples of adult Americans during the Great Depression, the proportion who believed wages paid to workers in industry were too low is between 0.52 and 0.58.
ANSWER:
Answer:
Step 1
(a) We are 95% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
This is not a reasonable interpretation of the survey results.
Flaw: Here in this interpretation, No interval has been provided about the population proportion.
(b) We are 92% to 98% confident 55% of adult Americans during the Great Depression felt wages paid to workers in industry were too low.
This is not a reasonable interpretation of the survey results.
Flaw: Here in this interpretation indicates that the level of confidence is varying.