It is claimed that 80% of people affected with pandemic flu shows mild to medium symptoms, meaning does not need to be hospitalized. A researcher is skeptical of this claim and wants to carry out a test for it. He randomly selects 2000 people who were diagnosed with this disease, and 1635 people were not hospitalized. What is the conclusion for this test at a 5% significance level?
H0: p = 0.8
Ha: p 0.8
sample proportion = 1635 / 2000 = 0.8175
Test statistics
z = ( - p) / sqrt [ p( 1 - p) / n ]
= (0.8175 - 0.80) / sqrt [ 0.8 * ( 1 - 0.8) / 2000 ]
= 1.96
p-value = 2 * P(Z > z)
= 2 * P(Z > 1.96)
= 2 * 0.025
= 0.05
Since p-value <= 0.05 , reject H0.
We have suffcient evidence to support the claim that 80% of people affected with pandemic flu
shows mild to medium symptoms.
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