Test the hypothesis using the P-value approach. Be sure to verify the requirements of the test.
Upper H 0=0.6
versus
Upper H1: >0.6
n=200;
x=125,
alphaα=0.1
Solution:
Here, we have to use z test for population proportion.
H0: p = 0.6 versus H1: p > 0.6
This is an upper tailed test.
We are given α = 0.1
Test statistic formula for this test is given as below:
Z = (p̂ - p)/sqrt(pq/n)
Where, p̂ = Sample proportion, p is population proportion, q = 1 - p, and n is sample size
x = number of items of interest = 125
n = sample size = 200
Sample size is adequate to use normal approximation.
p̂ = x/n = 125/200 = 0.625
p = 0.6
q = 1 - p = 0.4
Z = (p̂ - p)/sqrt(pq/n)
Z = (0.625 – 0.6)/sqrt(0.6*0.4/200)
Z = 0.7217
P-value = 0.2352
(by using z-table)
P-value > α = 0.1
So, we do not reject the null hypothesis
There is not sufficient evidence to conclude that the population proportion is greater than 0.6.
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