A nonprofit company concerned with the school dropout rates has designed a tutoring program aimed at students between 16 to 18 years old. A national center for educational statistics reported that the high school dropout rate for the year 2000 was 9.5%. One school district, who adopted the use of the nonprofit's tutoring program and whose dropout rate has always been very close to the national average, reported in 2004 that 157 of their 1754 students dropped out. Is their experience evidence that the tutoring program has been effective?
A. Compute the test statistic.
Solution :
This is the two tailed test .
The null and alternative hypothesis is
H0 : p = 0.095
Ha : p 0.095
n = 1754
x = 157
= x / n = 157 / 1754 = 0.0895
P0 = 0.095
1 - P0 = 1 - 0.095 = 0.905
z = - P0 / [P0 * (1 - P0 ) / n]
= 0.0895 - 0.905 / [(0.095 * 0.905) / 1754]
= -0.784
Test statistic = -0.784
P(z < -0.784) = 0.2165
P-value = 2 * 0.2165 = 0.433
= 0.05
P-value >
Fail to reject the null hypothesis .
There is not sufficient evidence to suggest that the tutoring program has been effective .
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