Question

In a study of 783 randomly selected medical malpractice​ lawsuits, it was found that 507 of them were dropped or dismissed. Use a 0.01 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

a.) what is the null hypothesis test to be conducted?

b.) what is the test static?

c.) what is the P value?

d.) what is the conclusion about the null hypothesis? e.) what is the final conclusion?

Answer 1

a)

H0: p = 0.50

Ha: p > 0.50

b)

Sample proportion = 507 / 783 = 0.6475

Test statistics

z = - p / sqrt( p (1 - p) / n)

= 0.6475 - 0.50 / sqrt( 0.50 * 0.50 / 783)

= 8.25

c)

P-value = P( Z > z)

= P( Z > 8.25)

= 0

d)

Since p-value < 0.01 , reject the null hypothesis.

e)

We conclude at 0.01 level that we have enough evidence to support the claim that most medical

malpractice lawsuits are dropped or dismissed.