In: Statistics and Probability
Historically emergency responders respond in less than 5 minutes 74% of the time. A recent sample of n = 715 found 70% of emergency calls had a response time of less than 5 minutes. Perform a hypothesis test with α = 2.5% to see if the response time percentage has significantly decreased.
A. What is Ho?
B. What is H1?
C. What is the value of the test statistic?
D. What is the value of the critical value?
E. What is the conclusion to this hypothesis test?
Here, we have to use one sample z test for the population proportion.
The null and alternative hypotheses for this test are given as below:
(A)
Null hypothesis: H0: The response time percentage has not significantly decreased.
H0: p = 0.74
Versus
(B)
Alternative hypothesis: Ha: The response time percentage has significantly decreased.
Ha: p < 0.74
This is a lower tailed test.
We are given
Level of significance = α = 0.025
(C)
Test statistic formula for this test is given as below:
Z = (p̂ - p)/sqrt(pq/n)
Where, p̂ = Sample proportion, p is population proportion, q = 1 - p, and n is sample size
n = sample size = 715
p̂ = x/n = 0.70
p = 0.74
q = 1 - p = 0.26
Z = (p̂ - p)/sqrt(pq/n)
Z = (0.70 – 0.74)/sqrt(0.74*0.26/715)
Z = -2.4384
Test statistic = -2.4384
(D)
Critical value = -1.96
P-value = 0.0074
(by using z-table)
(E)
Test statistic < Critical value
P-value < α = 0.025
So, we reject the null hypothesis
There is sufficient evidence to conclude that the response time percentage has significantly decreased.