Consider the following hypothesis test:Ho: p = 0.5 Ha: p not 0.5
A sample of 800 provided a sample proportion of 0.58
Using a level of significance = .05 what is the rejection rule?
Solution :
This hypothesis test is a two tailed test .
The null and alternative hypothesis is
H0 : p = 0.5
Ha : p 0.5
= 0.58
n=800
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.58 - 0.5 [(0.5* 0.5) / 800]
Test statistic = 4.525
Critical values are : -1.96 , +1.96
Rejection region is
z<-1.96 or z>1.96 reject Ho
hence Z>1.96 hence we reject Ho
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