Question

The proportion of library users who borrow books is 80%. A library director feels this is not true so, he randomly selected 100 borrowers and found that 30 of them borrowed books. Test the director’s belief at α = 0.01 significance level.

Hypotheses Test Type Critical Value Test Statistic T∗H0 :

H1 :

Decision

p−value

Answer 1

Desicon: Since p-value is less than level of significance 0.01 so there is evidence to support the director’s belief at α = 0.01 significance level.