In: Statistics and Probability
Suppose I’m trying to determine whether to reject or fail to reject the null hypothesis that the country has less than or equal to 70% of people that believe the country is going in the wrong direction. If this is not true then I hypothesize that it could be larger than 70%. I’ve also taken a survey of size 50 and have found the sample percentage to be 75%. My alpha value is .05.
1. Write the null and alternative hypotheses:
2. Write down and compute test statistic:
3. Draw Rejection Region
4. Suppose the p-value is .06
5. State your conclusion about the null hypothesis:
N = 50, = 0.75
1) Null and Alternative Hypotheses :
2) Test Statistics :
3) Rejection Region :
At =0.05, right tailed critical value from standard normal table, zc = 1.64
Rejection region for this right-tailed test is R = {z:z>1.64}
4) Decision about the null hypothesis :
Since it is observed that z = 0.7715 < zc = 1.64, it is then concluded that the null hypothesis is not rejected.
Using the P-value approach: The p-value is p = NORM.S.DIST(0.7715, 0) = 0.2963, and since p = 0.2963 > 0.05, it is concluded that the null hypothesis is not rejected.
5) Conclusion:
It is concluded that the null hypothesis Ho is not rejected. Therefore, there is not enough evidence to claim that the population proportion is greater than 0.70 , at 0.05 significance level.
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