According to a 2018 survey by a research group, 30% of adults typically run the water for a period of 6 to 10 minutes while taking the shower). Suppose that in a recent survey of 400 adults, 104 stated that they typically run the water for a period of 6 to 10 minutes when they take a shower. At the 5% significance level, can you conclude that the proportion of all adults run the water for a period of 6 to 10 minutes when they take a shower is less than 0.30? Answer the following questions.
Interpret the decision in the context of the original claim
Ans. Let
Population proportion of adults who typically run the water for a period of 6 to 10 minutes, P = 30% or 0.3
Sample proportion of adults who typically run the water for a period of 6 to 10 minutes, p = 104/400 = 0.26
Population standard error, se = [P*(1-P)/Sample Size]^0.5 = 0.0229128
a) Hypotheses,
H0: P > = 0.30, against
H1: P < 0.30 (Lower tailed test)
b) At 5% level of significance for a lower tailed test, z critical = -1.645
c) Test statistic, z because sample size is very large,
so, z statistic = (p - P)/se = (0.26 - 0.30)/0.0229128 = -1.74574
d) As |z statistic| > |z critical|, so, we reject the null hypothesis and hence, the proportion of all adults run the water for a period of 6 to 10 minutes when they take a shower is less than 0.30
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