. Test at ? =.05 and 0.01 the hypothesis that a majority (more than 50%) of students favor the plus/minus grading system at a university if in a random sample of 500 students, 265 favor the system?
H0: p = 0.50
Ha: p > 0.50 (Claim)
Sample proportion = 265 / 500 = 0.53
Test statstics
Z = - p / sqrt( p ( 1 -p ) / n)
= 0.53 - 0.50 / sqrt( 0.50 * 0.50 / 500)
= 1.3416
This is test statistics value.
At 0.05 significance level,
Critical value at 0.05 level = 1.645
Since test statistics value < 1.645, we do not have sufficient evidence to reject H0.
We fail to reject H0 at 0.05 significance level.
At 0.01 significance level,
Critical value = 2.3263
Since test statistics < 2.3263, we do not have sufficient evidence to reject H0.
At 0.01 significance level we fail to reject H0.
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