Consider a sample of 52 football games, where 32 of them were won by the home team. Use a 0.01 significance level to test the claim that the probability that the home team wins is greater than one-half. Identify the null and alternative hypotheses for this test.
Given:
Number of favourable cases, X = 32
Sample size, n = 52
Significance level, = 0.01
Sample proportion, = X/n = 32/52 = 0.6154
Hypothesis test:
The null and alternative hypothesis is
H0 : p 0.5 (p = 0.5 also true)
Ha : p > 0.5 (This is a right tailed test)
Test statistics is
z = - p/√p(1-p/n
= 0.6154-0.5/√0.5(1-0.5)/52
= 1.6642
Test statistics is z = 1.66
P-value for right tailed test:
P-value = P(Z>1.66) = 0.0485...(from z table)
Since P-value is greater than significance level 0.01, we fail to reject null hypothesis.
Decision: Fail to reject H0.
Conclusion : At 0.01 significance level, there is not sufficient evidence to conclude that the probability that the home team wins is greater than one-half.
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