In: Statistics and Probability
Test the hypothesis using the P-value approach. Be sure to verify the requirements of the test.
Upper H 0H0: p equals=0.7
versus
Upper H1: pgreater than>0.7
nequals=200
xequals=145
alpha equals=0.01
Null hypothesis
H0: p = 0.7
Alternative hypothesis
H1: p > 0.7
We have for given example,
Population proportion value is =0.7
x=145
n=200
Level of significance = 0.01
Estimate for sample proportion = 0.725
Z test statistic formula for proportion
P value is 0.2201 .....................by using Excel command 1-NORMSDIST(0.772) or by using Z table
P value is 0.2201 > 0.01
Therefore, we fail to reject H0.