Consider a drug testing company that provides a test for marijuana usage. Among 280 tested subjects, results from 25 subjects were wrong (either a false positive or a false negative). Use a 0.01 significance level to test the claim that less than 10 percent of the test results are wrong.
Solution :
This is the left tailed test .
The null and alternative hypothesis is
H0 : p = 0.10
Ha : p < 0.10
n = 280
x = 25
= x / n = 25 / 280 = 0.0893
P0 = 0.10
1 - P0 = 1 - 0.10 = 0.90
z = - P0 / [P0 * (1 - P0 ) / n]
= 0.0893 - 0.10 / [(0.10 * 0.90) / 280]
= -0.598
Test statistic = -0.598
P(z < -0.598) = 0.2749
P-value = 0.2749
= 0.01
P-value >
Fail to reject the null hypothesis .
There is no evidence that claim that less than 10 percent of the test results are wrong .
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