Question

A real estate magazine argues that more than 60% of the population own a home. In a random sample of 150 households, 95 responded that they own a home. At α=0.01, test the real estate magazine’s claim.

a) State the hypotheses.

b) Calculate the test statistic.

c) Compute the p-value. Round your answer to 4 decimal places.

Answer 1

a)

null Hypothesis:              Ho:p ≤		0.60
alternate Hypothesis:    Ha: p >		0.60

b)

sample success x   =		95
sample size          n    =		150
std error σp =√(p*(1-p)/n) =		0.0400
sample proportion p̂ = x/n=		0.6333
z =(p̂-p)/σp=(0.633-0.6)/0.633=		0.83

c)

p value                          =

0.2033

(from excel:1*normsdist(-0.83)