In: Statistics and Probability
Test the hypothesis using the P-value approach. Be sure to verify the requirements of the test.
Upper H 0: p = 0.3 versus Upper H 1: p > 0.3 n = 200; x = 80; a = 0.05
Requirement test:
Since p=0.3 so, q=1-p=0.7 and sample size 200 so
n*p=0.3*200= 60>5
n*q=0.7*200=210>5 so, we can assume it as normal distribution and use Z statistic for hypothesis testing.
Given that n = 200; x = 80 so, sample proportion will be:
The Hypotheses are:
Ho: p = 0.3
H1: p > 0.3
Based on the hypothesis we will use a one-tail test.
Rejection region:
At 0.05 level of significance reject Ho if Z>Z0.05 =1.645 ( Computed using Z table shown below)
Test statistic:
P-value:
The P-value is computed using Z table shown below at Z score calculated above as:
P-value=0.001
Conclusion:
Since P-value<<0.05 hence we reject the null hypothesis and conclude that there is sufficient evidence to support the claim.
Z table: