Minnesota Department of Health claims that the proportion of people affected by COVID-19 in Minnesota is less than 18%. To test this claim, a random sample of 250 were selected out of which 40 people were found to be affected by the virus. Find the test value.
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The test value is basically a test statistic is a standardized value that is calculated from sample data during a hypothesis test.
Its calculated as follows:
Test-statistic , t = (pcap - p)/sqrt(p*p/n)..........................(1), where
pcap = number of people who were effected by the disease/ total surveyed in the sample
= 40/250
= 0.16
pcap = .16, and
p = .18 ( this is given in the question), and
n = sample size = 250 ( also given in the question)
Substituting this in equation 1, we get:
t = (.16-.18)/sqrt(.18*.82/250) = -0.8231
The test statistic is -0.8231
Answer: test-value = -0.8231
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