Question

Among 800 subjects who completed four years of college, 145 of them smoke. At the 0.04 significance level, use the p-value method test to claim that among college graduates, less than one in five smoke.

(a) State the null and alternate hypothesis

(b) Find the value of the test statistic and the p-value

(c) If a=0.04, are the test results significant or insignificant? Explain in words your conclusion

Answer 1

a) Here claim is tha p<0.2 so and

b)

Now test statistic is

Now p-value is

c) As P value is greater than a=0.04, we fail to reject the nul hypothesis

Hence test is insignificant

So we do not have sufficient evidence to supportrt the claim that p<0.2