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A hospital director is told that 54%54% of the emergency room visitors are insured. The director...

A hospital director is told that 54%54% of the emergency room visitors are insured. The director wants to test the claim that the percentage of insured patients is not the expected percentage. A sample of 260260 patients found that 130130 were insured. At the 0.050.05 level, is there enough evidence to support the director's claim?

Step 4 of 7:

Determine the P-value of the test statistic. Round your answer to four decimal places.

Math   Statistics-And-Probability   
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Answer #1


Total number of sample (n) = 260
number of favourable events (X) = 130

We are interested in testing the hypothesis

Since P-value of a two tailed test is equal to 2(\phi(-|Z_0|))
P = 2(\phi(-1.2941))
P = 2(0.09781544078284554)
P = 0.1956

Decision Rule: Reject the null hypothesis if the test statistic value is less than the critical value -1.959963984540054 or greater than the critical value 1.959963984540054
The statistic value, -1.2941 is between the critical values -1.959963984540054 and 1.959963984540054.
Therefore, we fail to reject the null hypothesis.

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