Question

A manufacturer of orthopaedic equipment believes that specialised hospitals that have units dedicated to traumatology are a large part of the market in the USA, because these hospitals tend to buy more orthopedic equipment.

The manufacturer collected a sample and the data shows that out of a total of 326 specialised hospitals in 8 states in the USA, 173 have traumatology units.

1. We wish to test if there is sufficient evidence at the 1% significance level to suggest that the majority of the specialised hospitals in the USA have traumatology units.

   1. What is the hypothesised value of the population parameter?

   2. Perform an appropriate hypothesis test. Use the critical value approach and show all working

2. Comment on the manufacturer’s method of choosing a sample.

Answer 1