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)