A new cream that advertises that it can reduce wrinkles and improve skin was subject to a recent study. A sample of 40 women over the age of 50 used the new cream for 6 months. Of those 40 women, 30 of them reported skin improvement(as judged by a dermatologist). Is this evidence that the cream will improve the skin of more than 50% of women over the age of 50? Test using α=0.01. (a) Test statistic: z= (b) Critical Value: z=
Solution :
This is the right tailed test .
The null and alternative hypothesis is
H0 : p = 0.50
Ha : p > 0.50
= x / n = 30 / 40 = 0.75
P0 = 0.50
1 - P0 = 0.50
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.75 - 0.50 / [(0.50 * 0.50) / 40]
= 3.16
Test statistic = z = 3.16
= 0.01
Z0.01 = 2.326
Critical value = z = 2.326
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