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In: Statistics and Probability

A hospital director is told that 44% of the emergency room visitors are uninsured. The director...

A hospital director is told that 44% of the emergency room visitors are uninsured. The director wants to test the claim that the percentage of uninsured patients is above the expected percentage. A sample of 360 patients found that 180 were uninsured. At the 0.02 level, is there enough evidence to support the director's claim?

Step 4 of 6 : Determine the decision rule for rejecting the null hypothesis, H0 .

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Expert Solution

Null hypothesis  

          
              
Alternative hypothesis      

      
              
We have for given example,              
Population proportion value is =0.44          
x=180          
              
n=360          
Level of significance =   0.02          
Estimate for sample proportion = 0.5          
              
Z test statistic formula for proportion

P value is 0.0109....................by using Excel command 1-NORMSDIST(2.29) or by using Z table.

Z critical value for right tailed alternative hypothesis is 2.05

Decision Rule: Reject H0 if Z Calculated > 2.05(Z critical value)

2.29 > 2.05 Therefore, we reject H0 at

orchestra answered 2 years ago
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