Question

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. After testing this claim at alpha=5% the decision would be

Answer 1

Proportion (p0) = 0.18

Total number of sample (n) = 250

number of favourable events (X) = 40

We are interested in testing the hypothesis

Since, the test is two-tail test at

Decision Rule: Reject the null hypothesis if the test statistic value is less than the critical value -1.96 or greater than the critical value 1.96

The statistic value, -0.8231 is greater than the critical values -1.96. Therefore, we fail to reject the null hypothesis.