Question

In 2012, seventy percent of Canadian households had an internet connection. A sample of 484 households taken in 2013 showed that 75% of them had an internet connection. We are interested in determining whether or not there has been a significant increase in the percentage of the Canadian households that have internet connections. Please design your hypothesis test (2 points), conduct the test (2 points ) and draw your conclusion accordingly (1 point)

Answer 1

Solution :

This is the two tailed test .

The null and alternative hypothesis is

H0 : p = 0.70

Ha : p 0.70

= x / n = 0.75

1 - P0 = 0.30

Test statistic = z

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

= 0.75 - 0.70 / [(0.70 * 0.30) / 484]

Test statistic = 2.4

P-value = 0.0164

= 0.05

P-value <

Reject the null hypothesis .

There is sufficient evidence to determine whether or not there has been a significant increase in the percentage of the Canadian households that have internet connections