Question

A poll stated that 32% of those polled think the economy is getting worse. An economist wanted to check this claim so she surveyed 750 people and found that 30% of them thought the economy is getting worse. What is the p-value? (α = 0.05)

Answer 1

Solution:

This a two- tailed test.

The null and alternative hypothesis is,

Ho: p = 0.32

Ha: p 0.32

Test statistics

z = ( - ) / *(1-) / n

= ( 0.30 - 0.32) / (0.32*0.68) / 750

= -1.174

P-value = 2 * P(Z < -1.174 )

= 2 * 0.1202

= 0.2404

The p-value is p = 0.2404, and since p = 0.2404 > 0.05, it is concluded that fail to reject the null hypothesis.