Perform a full hypothesis test at the α = 0.05 level. (write out the hypothesis, determine the test statistic, p-value, and write out the conclusion in full sentences):
H0: p = 0.39
Ha: p < 0.39
Sample proportion = 680 / 1927 = 0.3529
Test statistics
z = ( - p) / sqrt [ p(1 - p) / n]
= (0.3529 - 0.39) / Sqrt ( 0.39 ( 1 - 0.39) / 1927)
= -3.34
p-value = P(Z < z)
= P(Z < -3.34)
= 0.0004
Since p-value < 0.05 level, reject H0.
We conclude at 0.05 level that we have sufficient evidence to conclude that percentage has declined over time.
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