Make sure you include all the five steps in the hypothesis testing questions.
H0:π = 0.6 Vs H1:π ≠ 0.6. Use the p-value approach with a significance level of α=0.05.
Solution:
A)
The null and alternative hypothesis are
H0 : = 0.6 vs Ha : 0.6
B)
Given
n = 400
= 0.3
The test statistic z is
z =
= (0.3- 0.6)/[0.6*(1 - 0.6)/400]
= -12.25
C)
sign in Ha indicates that the test is TWO TAILED
For TWO TAILED test ,
p value = P(Z < -z) + P(Z > +z) = P(Z < -12.25) + P(Z > +12.25) = 0.0000+0.0000 = 0.0000
TheP-value for this hypothesis test is 0.0000
D)Decision:
reject the null hypothesis H0
(Because p value is greater than given significance level 0.05)
E) Conclusion:
There is sufficient evidence to conclude that the population proportion is different from 0.6
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