In: Statistics and Probability
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.
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 .