Test the hypothesis using the P-value approach. Be sure to verify the requirements of the test.
H0: p=0.4 versus H1: p>0.4
n=125; x=55, a=0.05
Use technology to find the P-value.
P-value=_________
(Round to three decimal places as needed.)
Solution:
Here, we have to use z test for the population proportion.
H0: p = 0.4 versus Ha: p > 0.4
The test statistic formula is given as below:
Z = (p̂ - p)/sqrt(pq/n)
Where, p̂ = Sample proportion, p is population proportion, q = 1 - p, and n is sample size
p̂ = x/n
x = number of items of interest
x = 55
n = 125
p = 0.4
q = 1 – p = 1 – 0.4 = 0.6
p̂ = x/n = 55/125 = 0.44
Z = (p̂ - p)/sqrt(pq/n)
Z = (0.44 – 0.4)/sqrt(0.4*0.6/125)
Z = 0.9129
P-value = 0.181
(by using excel)
P-value > α = 0.05
So, we do not reject the null hypothesis
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