71. The unemployment rate for 18- to 34-year-olds was reported to be 10.8% (The Cincinnati Enquirer, November 6, 2012). Assume that this report was based on a random sample of
four hundred 18- to 34-year-olds.
A political campaign manager wants to know if the sample results can be used
to conclude that the unemployment rate for 18- to 34-years-olds is significantly
higher than the unemployment rate for all adults. According to the Bureau of Labor
Statistics, the unemployment rate for all adults was 7.9%. Develop a hypothesis test
that can be used to see if the conclusion that the unemployment rate is higher for
18-to 34-year-olds can be supported.
b. Use the sample data collected for the 18- to 34-year-olds to compute the p-value for
the hypothesis test in part (a). Using a = .05, what is your conclusion?
c. Explain to the campaign manager what can be said about the observed level of sig-
nificance for the hypothesis testing results using the p-value.

The young, have been particularly affected, by the rising levels of unemployment associated with this recession, in Europe and North America. Table 2 shows the rise in youth unemployment rates from July 2008 to July 2009. Currently youth unemployment rates for the under 25s in the EU27 are 19.7% and 17.8% in the United States respectively. They are especially high in Spain (38.4%). They are everywhere higher than adult rates. The final column gives the ratio of youth to overall unemployment rates. Youth rates are more than two and a half times overall rates in Belgium, Finland, France, Hungary, Luxembourg, Slovenia, Sweden and the UK.

The United Nations (2007) confirmed the finding of high youth unemployment rates and high youth-to-adult rates in the UK.4 They estimated this ratio in the UK at 3.6 in 2005, which, in Europe was only exceeded by Malta (3.7), Italy (3.9), Sweden (3.8) and Iceland (4.5) and joint sixteenth with Costa Rica and Haiti out of 117 countries. Outside Europe, New Zealand was the only OECD country with a higher ratio (3.8).
The proportion of the young in the UK who are in full-time education, increased from 26% in 1993 to 38% in 2007. This proportion is still well below that of many other countries. Data from the OECD suggests that the proportion of the young who are in school is considerably higher in, for example, Belgium (60%); Finland (56%); France (61%), Italy (57%); Luxembourg (69%) and Sweden (57%). One response to rising unemployment on the part of youth has been to return to full-time education (Blanchflower and Freeman, 2000, Rice, 1999).5
B