Using = 0.05, test whether the population proportion of college if college graduates who smoke is not the 0.25 rate for the general population. Assume is a sample of 500, 100 college graduates smoke.
H0: p = 0.25
Ha: p 0.25
Sample proportion = 100 / 500 = 0.20
Test statistics
z = ( - p) / sqrt [ p( 1 - p) / n]
= (0.20 - 0.25) / sqrt [ 0.25 * ( 1 - 0.25) / 500 ]
= -2.58
This is test statistics value.
Critical value at 0.05 level = 1.96
Since test statistics falls in rejection region, Reject H0.
We conclude at 0.05 level that we have sufficient evidence to support the claim.
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