Question

(PLEASE make answer clear)

8.4 Confidence in banks: A poll conducted in 2012 asked a random sample of 1276 adults in the United States how much confidence they had in banks and other financial institutions. A total of 150 adults said that they had a great deal of confidence. An economist claims that less than 14% of U.S. adults have a great deal of confidence in banks. Can you conclude that the economist's claim is true? Use both =α0.01 and =α0.05levels of significance and the P-value method with the TI-84 Plus calculator.

(a) State the appropriate null and alternate hypotheses.

:H0

:H1

This hypothesis test is a  ▼(Choose one)(right tail, left tail or two tailed) test.

B. Compute theP-value. Round the P- value to at least four decimal places.

P-value__??

C. Determine whether to rejectH0

(Reject OR do not reject hypothesis) the null hypothesisH0

D. State a conclusion. There is or is not enough information to support claim

Answer 1

Solution:

H₀ : p = 0.14

H₁ : p < 0.14

This hypothesis test is a left tail test.

B.

We use  TI-84 Plus calculator.

z test for proportion on TI 84

Steps:

Steps:

Press STAT

Go to TESTS menu.

Go to 1-PropZTest

p₀: 0.14

x : 150

n : 1276

Prop <  p₀

Calculate

Output:

z = -2.310651416

p = 0.0104260317

C)

At α = 0.01 , do not reject the null hypothesis H0

At α = 0.05 ,  Reject   the null hypothesis H0

D)

At α = 0.01 ,There is not enough information to support claim

At α = 0.05 ,  There is enough information to support claim