Consider the following hypothesis test:
H0: p .8
Ha: p > .8
A sample of 500 provided a sample proportion of .853.
i. Determine the standard error of the proportion.
ii. Compute the value of the test statistic.
iii. Determine the p-value; and at a 5% level, test the above hypotheses.
Solution :
This is the RIGHT tailed test .
The null and alternative hypothesis is
H0 : p = 0.8
Ha : p > 0.8
= 0.853
1 - P0 = 1-0.8=0.2
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.853-0.8/ [(0.8*0.2) /500 ]
= 0.017888
P(z >2.96 ) = 1 - P(z < 2.96) = 1-0.9985=0.0015
P-value = 0.0015
= 0.05
P-value <
Reject the null hypothesis .
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