Suppose that in a random selection of 100 colored candies, 23% of them are blue. The candy company claims that the percentage of blue candies is equal to 20%. Use a 0.05 significance level to test that claim
given data are:-
sample size (n ) = 100
sample proportion () =0.23
hypothesis:-
test statistic is:-
p value be:-
[ using standard normal table]
decision:-
p value = 0.4532 > 0.05 (alpha)
so, we fail to reject the null hypothesis and conclude that there is sufficient evodence to support the company's claim at 0.05 level of significance.
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