Question

In a study of 807 randomly selected medical malpractice​ lawsuits, it was found that 494 of them were dropped or dismissed. Use a 0.05 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

Answer 1

Answer:

Here it is the two tailed test .

Null hypothesis H₀ : p = 0.5

Alternate hypothesis H_a : p 0.5

n = 807

x = 494

Now,

= x / n

substitute values

= 494 / 807

= 0.61214

consider,

P₀ = 0.5

1 - P₀ = 1 - 0.5 = 0.5

z = - P₀ / [P_{0 *} (1 - P₀ ) / n]

= 0.61214 - 0.5 / [(0.5 * 0.5) / 807]

= 6.3713

Test statistic :

P(z > 6.3713) = 1 - P(z < 8.226)

= 1 - 1

P(z > 6.3713) = 0

P-value = 2 * 0 = 0

Significance level = 0.05

By observing we can say that, P-value <

So we conclude that we reject the null hypothesis .And claim is true .