Question

In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 70% of them were dropped or dismissed. Use a 0.01 significance level to test the claim that more than 50% of medical malpractice lawsuits are dropped or dismissed.

a) Write the claim and opposite in symbolic form.

b) Identify the Null and Alternate hypotheses in symbolic form

c) Identify the significance level.

d) find the test statistic and the p-value.

e) State the decision.

f) State the conclusion.

Answer 1

(a)

Claim : p > 0.50

Opposite : p ≤ 0.50

(b)

Ho: p ≤ 0.50

Ha: p > 0.50 (Claim)

(c) significance level.= 0.01

(d) Test statistics

n = 1228

= 0.70

= x/ n

x = 860

z = 14.040

p value = 0

e) As p value is less than level of significance (0.01) we reject the Null hypothesis.

f) Hence we have sufficient evidence to believe that more than 50% of medical malpractice lawsuits are dropped or dismissed.