Question
A hospital director is told that 34% of the treated patients are uninsured. The director wants...
A hospital director is told that 34% of the treated patients are uninsured. The director wants to test the claim that the percentage of uninsured patients is less than the expected percentage. A sample of 140 patients found that 35 were uninsured. Determine the decision rule for rejecting the null hypothesis, H0, at the 0.02 level.
Homework Answers
Answer #1
The following information is provided: The sample size is N = 140, the number of favorable cases is X = 35, and the significance level is α=0.02
(1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho: p = 0.34
Ha: p < 0.34
This corresponds to a left-tailed test, for which a z-test for one population proportion needs to be used.
(2) Rejection Region
Based on the information provided, the significance level is α=0.02, and the critical value for a left-tailed test is z_c = -2.05
The rejection region for this left-tailed test is 
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