In: Statistics and Probability
Suppose that in a random selection of 100 colored candies, 25% of them are blue. The candy company claims that the percentage of blue candies is equal to 27%. Use a 0.05 significance level to test that claim. Identify the test statistic for this hypothesis test. Identify the P-value for this hypothesis test. Identify the conclusion for this hypothesis test.
Null hypothesis
       
          
   
Alternative hypothesis  
  
       
          
   
We have for given example,      
       
Population proportion value is =0.27      
   
      
          
   
n=100          
Level of significance =   0.05  
       
Estimate for sample proportion =0.25      
   
          
   
Z test statistic formula for proportion  
           
=-0.45      
P value = 0.6527..................by using Z table or by using Excel command =2*NORMSDIST(-0.45)