Question

Suppose we wish to organize a rock concert at a university campus. The campus has 20,000 students. Our costs will be exactly recovered if 4,000 students attend the concert; we will make a profit if more than 4,000 students attend. In a simple random sample of 100 students, 30 students will attend the concert. At a 95% level of confidence, test the null hypothesis that not more than 4,000 students will attend the concert.

Answer 1

here as 4000 is p=4000/20000 =0.2 of total population

as test statics fall in rejection region , we reject null hypothesis and conclude that more than 4,000 students will attend the concert.