Question

For the following, conduct a hypothesis test using the p-value or critical value method.

Find and state: a) H₁ or H_0, as requested, b) z_c or t_c value as appropriate c) z or t value as appropriate d) the interpreted answer to the question.

9. Jissica sells real estate. She saw that in a sample of 23 of her homebuyers, 18 found her through a friend. At α = 0.07 can she reject the promo that 80% of homebuyers find their real estate agent through a friend?

a) H₁__________ b) __________ c) __________ d) _______________________________

Answer 1

Ho : P = 0.80
Ha : P 0.80

Level of Significance (l.o.s.) : = 0.07

Decision Criteria : Reject Ho at 7% l.o.s. if | Z cal | > Z tab,
where Z tab = Z (/2) = Z (0.035) = 1.8119

Calculation : = 18/23 = 0.7826, n = 23

=   = = 0.0834

Z cal =   = -0.2086

Conclusion : Since | Z cal | < Z tab, we do not reject Ho at 7% l.o.s. & thus, conclude that she cannot reject the promo that 80% of homebuyers find their real estate agent through a friend.

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