Question

In a study of 788 randomly selected medical malpractice​ lawsuits, it was found that 508 of them were dropped or dismissed. Use a 0.05

significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

1.what is the test statistic

2. What is the P-value

3. What is the conclusion

Answer 1

Solution :

This is the two tailed test .

The null and alternative hypothesis is

H₀ : p = 0.5

H_a : p 0.5

= 508 / 788 = 0.6447

Test statistic = z

= - P₀ / [P_{0 *} (1 - P₀ ) / n]

= 0.6447 - 0.5 / [(0.5 * 0.5) / 788]

= 8.12

P-value = 0.000

= 0.05

P-value <

Reject the null hypothesis .

There is sufficient evidence to suggest that claim that most medical malpractice

lawsuits are dropped or dismissed.