In: Statistics and Probability
According to a recent poll 53 percent of Americans would vote for the incumbent president. If a random sample of 100 people results in 45 percent who would vote for the incumbent, test the claim that the actual percentage is 53 percent. Use a 0.03 significance level. show all 5 steps.
Given that according to a recent poll 53 percent, p=0.53 of Americans would vote for the incumbent president. If a random sample of n = 100 people results in 45 percent = 0.45 who would vote for the incumbent.
So, to find the correct test we need to check the requirements which are:
1) If n*p(1-p) >10 and
2) If the sample is randomly selected then the distribution is normal.
so, as n*p(1-p) >10 = 100*0.53(1-0.53) = 24.91 which is greater than 10 and the sample is randomly selected hence the distribution is normal thus the Z test is applicable for hypothesis testing.
To test the claim we need to conduct the test hypothesis which is:
Based on the hypothesis it is a two-tailed test.
Rejection region:
Based on the given significance level the Zc or the Z-critical score is calculated using the excel formula for normal distribution which is =NORM.S.INV(0.985) thus the Z score computed is Zc=+/-2.17.
Thus, Reject Ho if Z >2.17 or Z<-2.17
Test Statistic:
P-value:
The P-value is computed using the excel formula for normal distribution which is =2*(NORM.S.DIST(-1.603, TRUE)) The P-value computed as 0.109.
Conclusion:
Since the Z score computed is greater than -Zc and P-value is greater than 0.03 level of significance hence we cannot reject the null hypothesis thus we conclude that there is insufficient evidence to warrant the claim.