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In: Statistics and Probability

A proportion, p, of people who are alcoholics is 60%. A random sample of 130 people...

A proportion, p, of people who are alcoholics is 60%. A random sample of 130 people is done, and 63 of them confused to be an alcoholic. Can we reject the hypothesis that .05 level of significance? Show work.

Solutions

Expert Solution

Solution :

This is the two tailed test .

The null and alternative hypothesis is

H0 : p =0.60

Ha : p 0.60

= x / n = 63/130=0.485

P0 = 0.60

1 - P0 = 1-0.60=0.40

Test statistic = z

= - P0 / [P0 * (1 - P0 ) / n]

= 0.485-0.60/ [(0.60*0.40) /130 ]

= -2.68

P(z <-2.68 ) = 0.0038

P-value = 0.0038

= 0.05

P-value <

Reject the null hypothesis .


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