In: Statistics and Probability
A report claims that 46% of full-time college students are employed while attending college. A recent survey of 60 full-time students at a state university found that 28 were employed. Use the five-step p-value approach to hypothesis testing and a 0.05 level of significance to determine whether the proportion of full-time students at this state university is different from the national norm of 0.46. find the t statistic find the p value find the critical value
Answer)
Null hypothesis Ho : P = 0.46
Alternate hypothesis Ha : P not equal to 0.46
N = 60
First we need to check the conditions of normality that is if n*p and n*(1-p) both are greater than 5 or not
N*p = 27.6
N*(1-p) = 32.4
Both the conditions are met so we can use standard normal z table to estimate the P-Value
Test statistics z = (oberved p - claimed p)/standard error
Standard error = √{claimed p*(1-claimed p)/√n
Observed P = 28/60
N = 60
Claimed P = 0.46
Z = 0.1
From z table, P(z>0.1) = 0.4602
As the test is two tailed
P-value = 2*0.4602 = 0.9204
As the obtained p-value is greater than 0.05 given significance
We fail to reject the null hypothesis Ho
We do not have enough evidence to support the claim that proportion is different from 0.46
Given significance level is 0.05
As the test is two tailed
We will divide it into two equal parts
0.025
From z table, P(z<-1.96) = P(z>1.96) = 0.025
So, critical values are -1.96 and 1.96
Rejection region is reject Ho if test statistics is less than -1.96 or greater than 1.96
As 0.1 is not less than -1.96 nor greater than 1.96
We fail to reject the null hypothesis