Problem 5: An exit poll from an election was taken with 1024 random voters. 528 voters favored the incumbent. Is the race too close to call? Use Hypothesis testing with 1% level of significance to answer the question. Hint: What is the probability of a candidate winning if the race is “too close to call”?
Solution :
This is the two tailed test .
The null and alternative hypothesis is
H0 : p = 0.5
Ha : p 0.5
= x / n = 528 / 1024 = 0.5156
P0 = 0.5
1 - P0 = 0.5
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.5156 - 0.5 / [(0.5 * 0.5) / 1024]
= 1
P(z > 1) = 1 - P(z < 1) = 0.1587
P-value = 0.3174
= 0.01
P-value >
Fail to reject the null hypothesis .
There is no sufficient evidence to conclude that the race too close to call .
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