Question

1. The university system boasts that over 70% of its administrators have master’s degrees. Provide the formal null and alternative hypotheses for a test of this question. Is this a one or two-tailed hypothesis?
2. Do you have a large enough sample to conduct the correct hypothesis test? Explain with a calculation why or why not.
3. If your answer to part “h” is yes, then conduct this hypothesis test based on the 95% significance level. Do you reject or fail to reject your null hypothesis? Why?

Answer 1

1.

Hypothesis:

This is one tailed hypothesis.

2.

The sample is not large enough to conduct the correct hypothesis test.

Following conditions are need to be satisfy in order to do hypothesis testing:

i. np 10

ii. n (1-p) 10

Here n = 20 and p = 0.70

Hence, np = 20 * 0.70 = 14 and n(1-p) = 20 * 0.30 = 6

Second condition is not satisfy.

3.

Since answer to above question is no, we can't compute confidence interval.