Directions: You want to start by determining whether you are interested in working with a mean or a proportion. Then identify each of the parts listed below.
1. In order to use the formulas for a hypothesis test we first need to confirm that the appropriate assumptions are met. We need to confirm that we have a random sample and that the appropriate sample size requirements for the central limit theorem are satisfied. When working with a single mean we do not need to meet the sample size requirements if the population is normally distributed. If the assumptions are not met acknowledge that you need to proceed with caution.
2. Identify the null and alternative hypotheses. The null hypothesis will be listed first. When working with a proportion the hypothesis will include that symbol for the population proportion, p. When working with a mean the hypothesis will include that symbol for the population mean, µ.
3. Calculate the appropriate test statistic. When working with proportions you will calculate a z-statistic. When working with means you will calculate a t-statistic.
4. Compare your test statistic to the appropriate distribution to find the p-value.
5. Conclude the test in context of the problem.
Question that needs to be solved: EKU would like to know if fewer seniors pan on staying in Kentucky after graduation compared to freshman. A random sample of 100 seniors are surveys and 71 responded that they plan on staying in Kentucky after graduation. A random sample of 100 freshman are surveys and 82 responded that they plan on staying in Kentucky after graduation. Use α=0.05.
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