The mayor of a town has proposed a plan for the construction of a new bridge. A political study took a sample of 1400 voters in the town and found that 53% of the residents favored construction. Using the data, a political strategist wants to test the claim that the percentage of residents who favor construction is more than 50%. Make the decision to reject or fail to reject the null hypothesis at the 0.02 level.
Solution :
This hypothesis test is a right tailed test .
The null and alternative hypothesis is
H0 : p = 0.50
Ha : p > 0.50
= 0.53
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.53 - 0.50 / [(0.50 * 0.50) / 1400]
= 2.245
P-value = 0.0124
= 0.02
P-value <
Reject the null hypothesis .
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