The probability that a person will develop dementia over their lifetime is 0.004. Researches conducted a random sample of 3000 people and determined that 17 of them developed dementia. Is there evidence to support the claim that the true proportion of people who will develop dementia is different from 0.004 at the α = 0.05 level of significance?
1. Determine what the null and alternative hypotheses is:
Ho:
H1:
2. Which type of test is conducted in the problem?
3. What type of parameter is being tested?
4. What does it mean to make a Type I error?
5. What if the null hypothesis was rejected. What would the conclusion be based on the results of this test?
6. Find the test statistic
7. Find the P value for the problem
8. What is the conclusion based on the P value for the hypothesis test?
9. Construct a 95% confidence interval for the true proportion of people who may develop dementia over a lifetime. Is the 0.004 within you're interval?
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