A test of H0: p = 0.5 versus Ha: p > 0.5 has the test statistic z = 1.15.
Part A: What conclusion can you draw at the 5% significance level? At the 1% significance level? (6 points)
Part B: If the alternative hypothesis is Ha: p ≠ 0.5, what conclusion can you draw at the 5% significance level? At the 1% significance level?
Solution:
z = 1.15
Part A:
This is a right tailed test.
P-value = P(Z > 1.15 )
= 1 - P(Z < 1.15 )
= 1 - 0.8749
= 0.1251
Therefore, P-value = 0.1251 > 0.05, it is concluded that fail to reject null hypothesis.
P-value = 0.1251 > 0.01, it is concluded that fail to reject null hypothesis.
Part B :
This is a two tailed hypothesis,
P-value =2* P(Z > 1.15 )
= 2 * (1 - P(Z < 1.15 ))
= 2 * (1 - 0.8749)
= 0.2502
Therefore, P-value = 0.2502 > 0.05, it is concluded that fail to reject null hypothesis.
P-value = 0.2502 > 0.01, it is concluded that fail to reject null hypothesis.
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