Question

In explaining why their country is an attractive place to invest, the Minister of Commerce from Desertia has argued that the political problems have been exaggerated and that fewer people have been imprisoned for political reasons than you have been led to believe. However, Amnesty International reports that one third of the prisoners in Desertia are political prisoners. A representative from your company visited a prison and sampled 500 prisoners in Desertia, concluding that 90 of them are political prisoners. Test the hypothesis, at the 5% significance level, that one third of the prisoners in Desertia are political prisoners. Does this data support the Minister of Commerce or Amnesty International? What other issues might be important when evaluating this data?

Answer 1

We can write

1/3 = 0.333

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Yes there is evidence to support the Minister of Commerce or Amnesty International.

Other issues are: Sample should be random sample.