The mayor of a town has proposed a plan for the annexation of an adjoining community. A political study took a sample of 1000 voters in the town and found that 61% of the residents favored annexation. Using the data, a political strategist wants to test the claim that the percentage of residents who favor annexation is above 57%. Make the decision to reject or fail to reject the null hypothesis at the 0.10 level.
Solution :
This hypothesis test is a right tailed test .
The null and alternative hypothesis is
H0 : p = 0.57
Ha : p > 0.57
= 0.61
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.61 - 0.57 / [(0.57 * 0.43) / 1000]
= 2.555
P-value = 0.0053
= 0.10
P-value <
Reject the null hypothesis .
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