In: Statistics and Probability
Test the hypothesis using the P-value approach. Be sure to verify the requirements of the test. Ho:p=0.74 versus H1:p(not equal) to 0.74 N= 500, x= 360, a= 0.05 Is npo (1-po)_>10? A. No, because np0(1-p0)=? B. Yes, because np0(1-p0)=?.
Now Find P (with carrot on top)=?
Find the test statistic z0=?
Find the P-value=?
State the conclusion of the hypothesis test.
Answer)
Null hypothesis Ho : P = 0.74
Alternate hypothesis Ha : P not equal to 0.74
N = 500
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
And n*p*(1-p) > 10
N*p = 370
N*(1-p) = 130
N*po*(1-po) = 96.2 > 10.
So, yes as npo*(1-po) > 10
All 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 = 360/500
Claimed P = 0.74
N = 500
After substitution
Z = -1.02
From z table, P(z<-1.02) = 0.1539
As the test is two tailed
P-value = 2*0.1539 = 0.3078
As the obtained p-value is greater than the given significance 0.05
We fail to reject the null hypothesis Ho
So, we do not have enough evidence to conclude that p is not equal to 0.74