In: Statistics and Probability
The National Institute of Mental Health published an article that in any one year-period, approximately 9.5 % of American adults suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, seven of them suffered from depression or a depressive illness. Conduct a hypothesis test to determine if the true proportion of people in that town suffering from depression or a depressive illness is lower than the percent in the general adult American population at a level of significance, ?=0.05.
a. Set up the appropriate null and alternative hypotheses.
b. Sketch the rejection region indicating the critical value and the appropriate shaded area.
c. Compute the test statistic and find the p-value.
d. State your conclusion to the hypothesis test using both the critical value and p-value approach.(Be sure to explain the reasoning for your conclusion and state the meaning of your conclusion in terms of the hypotheses and the context of the application of the problem).
(i). Critical value approach
(ii). P-value approach