In: Statistics and Probability
A research center claims that at least32% of adults in a certain country think that their taxes will be audited. In a random sample of 800 adults in that country in a recent year,29%say they are concerned that their taxes will be audited. At alphaαequals=0.01,is there enough evidence to reject the center's claim?
Null hypothesis
           
          
           
Alternative hypothesis  
   
           
   
          
           
We have for given example,      
           
   
Population proportion value is =0.32      
           
x=232          
       
          
           
n=800          
       
Level of significance =   0.01  
           
   
Estimate for sample proportion 
          
           
Z test statistic formula for proportion
=-1.82          
      
P value is = 0.9655........................by using normal probability table or by using Excel command NORMSDIST(-1.82)
P value is =0.9665 > 0.01
Therefore, we fail to reject H0 at 
We can say that, at least 32% of adults in a certain country
think that their taxes will be audited.