Question

In a study of 800 randomly selected medical malpractice​ lawsuits, it was found that 499 of them were dropped or dismissed. Use a 0.05 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

Answer 1

H0: p 0.50

Ha: p > 0.50

Sample proportion = 499 / 800 = 0.6238

Test statistics

z = ( - p ) / sqrt [ p( 1 - p) / n]

= ( 0.6238 - 0.50) / sqrt [ 0.50 * 0.50 / 800 ]

= 7.00

Critical value at 0.05 significance level = 1.645

Since test statistics falls in rejection region, Reject H0.

We conclude at 0.05 level that we have sufficient evidence to support the claim that

most medical malpractice lawsuits are dropped or dismissed.