an emergency fund is defined as a savings account that has a balance equal to at least two months living…

an emergency fund is defined as a savings account that has a balance equal to at least two months living expenses. an article in a financial magazine claims that 80% of american adults do not have an emergency fund. to investigate this claim, a financial advisor selects a random sample of 150 americans and finds that 112 do not have an emergency fund. the financial advisor would like to know if the data provide convincing evidence that the true proportion of american adults who do not have an emergency fund is less than 80%. the power of this test to reject the null hypothesis if ( p = 0.747 ) is 0.49 using a significance level of ( alpha = 0.05 ). what are two ways the financial advisor could increase the power of this test? the financial advisor could use a sample size that is larger than 150 and use a significance level that is larger than ( alpha = 0.05 ). the financial advisor could use a sample size that is larger than 150 and use a significance level that is smaller than ( alpha = 0.05 ). the financial advisor could use a sample size that is smaller than 150 and use a significance level that is larger than ( alpha = 0.05 ). the financial advisor could use a sample size that is smaller than 150 and use a significance level that is smaller than ( alpha = 0.05 ).

an emergency fund is defined as a savings account that has a balance equal to at least two months living expenses. an article in a financial magazine claims that 80% of american adults do not have an emergency fund. to investigate this claim, a financial advisor selects a random sample of 150 americans and finds that 112 do not have an emergency fund. the financial advisor would like to know if the data provide convincing evidence that the true proportion of american adults who do not have an emergency fund is less than 80%. the power of this test to reject the null hypothesis if ( p = 0.747 ) is 0.49 using a significance level of ( alpha = 0.05 ). what are two ways the financial advisor could increase the power of this test? the financial advisor could use a sample size that is larger than 150 and use a significance level that is larger than ( alpha = 0.05 ). the financial advisor could use a sample size that is larger than 150 and use a significance level that is smaller than ( alpha = 0.05 ). the financial advisor could use a sample size that is smaller than 150 and use a significance level that is larger than ( alpha = 0.05 ). the financial advisor could use a sample size that is smaller than 150 and use a significance level that is smaller than ( alpha = 0.05 ).

Answer

Brief Explanations:

The power of a test is the probability of correctly rejecting the null hypothesis. A larger sample size (n) reduces the standard error (\sqrt{\frac{p(1 - p)}{n}}), making it easier to detect a significant difference. A larger significance level (\alpha) (e.g., from (0.05) to (0.10)) increases the rejection region, making it more likely to reject the null hypothesis.

Answer:

The financial advisor could use a sample size that is larger than 150 and use a significance level that is larger than (\alpha = 0.05).