In: Statistics and Probability
> Toastmasters International cites a report by Gallup Poll that 40% of Americans fear public speaking. A student believes that less than 40% of students at her school fear public speaking. She randomly surveys 361 schoolmates and finds that 144 report they fear public speaking. Conduct a hypothesis test at the 5% level to determine if the percent at her school is less than 40%.
> Note: If you are using a Student's t-distribution for the
problem, you may assume that the underlying population is normally
distributed. (In general, you must first prove that assumption,
though.)
> A. State the distribution to use for the test. (Round your
answers to four decimal places.)
> B. What is the test statistic? (If using the z distribution
round your answers to two decimal places, and if using the t
distrib
> C. What is the p-value? (Round your answer to four decimal
places.)
> D. Construct a 95% confidence interval for the true
proportion. Label the point estimate and the lower and upper bounds
of the confidence interval. (Round your answers to four decimal
places.)
Solution:
p = proportion of Americans fear public speaking = 0.40
n = sample size = 361
x = Number of schoolmates fear public speaking = 144
Level of significance = 0.05
We have to test the hypothesis that less than 40% of students at her school fear public speaking.
that is: p < 0.40
Part A. State the distribution to use for the test.
For testing hypothesis for proportion , we use normal (z) distribution.
thus
Part B. What is the test statistic?
where
thus
Part C) What is the p-value?
For left tailed test , p-value is:
p-value = P(Z < z test statistic)
p-value = P(Z < -0.04)
Look in z table for z = -0.0 and 0.04 and find corresponding area.
P( Z< -0.04) =0.4840
thus
p-value = P(Z < -0.04)
p-value = 0.4840
Part D. Construct a 95% confidence interval for the true proportion. Label the point estimate and the lower and upper bounds of the confidence interval.
The point estimate is:
and
where
We need to find zc value for c=95% confidence level.
Find Area = ( 1 + c ) / 2 = ( 1 + 0.95) /2 = 1.95 / 2 = 0.9750
Look in z table for Area = 0.9750 or its closest area and find z value.
Area = 0.9750 corresponds to 1.9 and 0.06 , thus z critical value = 1.96
That is : Zc = 1.96
Thus
Thus
and