The mayor of a town has proposed a plan for the annexation of an adjoining community. A political study took a sample of 1400 voters in the town and found that 75% of the residents favored annexation. Using the data, a political strategist wants to test the claim that the percentage of residents who favor annexation is over 72%. Make the decision to reject or fail to reject the null hypothesis at the 0.02 level
Solution :
This is the right tailed test .
The null and alternative hypothesis is
H0 : p = 0.72
Ha : p > 0.72
= 0.75
n = 1400
P0 = 0.72
1 - P0 = 1 - 0.72
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.75 - 0.72 / [(0.72 * 0.38 / 1400]
= 2.15
P(z > 2.15) = 1 - P(z < 2.15) = 0.01136
P-value = 0.01136
= 0.2
P-value <
Reject the null hypothesis .
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