It is claimed that 6% of the population in a specific village suffer from a certain rare eye disorder. However, the doctor in the village believes that the true proportion of sufferers is actually lower than 6%. He randomly tests 500 people from the village and finds that 22 of them have the eye disorder. Is there significant evidence that the doctor right?
Ho:p=0.06
Ha:p<0.06
standard error=sqrt(p*(1-p)/n)
=sqrt(0.06*(1-0.06)/500)
standard error= 0.01062073
Test statistic,z=p^-p/sqrt(p*(1-p)/n)
p^=x/n=22/500= 0.044
z=p^-p/sqrt(p*(1-p)/n
=diff in proportions/standard error
=(0.044-0.06)/0.01062073
=-1.506488
p value in excel
=NORM.S.DIST(-1.506488,TRUE)
p value=0.065970973
p>0.05
Fail to reject ho
Conclusion:There is no suffcient statisitcal evidence at 5% level of significance to support the claim that
the true proportion of sufferers is actually lower than 6%.
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