Question

A doctor’s group is interested in testing to see if more people in small towns choose their doctor by word of mouth recommendations (rather than some other method) compared to people who live in large cities. A random sample of 1000 people from small towns reveals that 850 chose their doctor through word of mouth referrals. A random sample of 2500 people from large cities shows that 1950 chose their doctor through word of mouth referrals.

(1 pt.) Write out Ho and Ha to test if the proportion of people choosing their doctor by word of mouth referrals is larger in small towns than in large cities.

(1 pt.) Using MegaStat, calculate the p-value and attach your output sheet printout.

(1 pt.) Can we reject Ho at the 95% confidence level? CAREFULLY EXPLAIN WHY OR WHY NOT. Can we be 95% confident that a larger percent of people in small towns chose their doctors using word of mouth referrals compared to people in large cities?

Answer 1