In: Statistics and Probability
An FM rock station claims that 85% of all its listeners are college students. A statistician decides to test this claim against the suspicion that the percentage is too high. A random sample of 2000 listeners is selected from the population of all listeners and it is determined that 1655 are college students. Perform a hypothesis test to answer the question: Do the sample results support the statistician’s claim at α = 1 %?
I. State the hypotheses (in words & symbols):
H0:
Ha:
II. Determine the model to test H0 Can one use a normal distribution for the Sampling Distribution model to perform this test? Please explain.
b) Using the appropriate notation, state the MEAN & STD ERROR of the sampling distribution:
Mean:
STD Error:
III. Determine the Decision Rule: State the decision rule:
IV. Analyze the sample data: Using the appropriate notation, state the sample result of the test, p-value and the test statistic.
sample result is:
p-value is:
test statistic is:
V. State the Conclusion:
4 Can the statistician reject the rock station's claim at α = 1%? YOU MUST EXPLAIN YOUR ANSWER.
The sample size is N = 2000, the number of favorable cases is X = 1655, and the sample proportion is
and the significance level is α=0.01
(1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho: p=0.85 The proportion of listeners of FM rock station has 85% students.
Ha: p<0.85 The proportion of listeners of FM rock station has less than 85% students.
This corresponds to a left-tailed test, for which a z-test for one population proportion needs to be used.
(2) Rejection Region
The significance level is α=0.01, and the critical value for a left-tailed test is zc=−2.33.
The rejection region for this left-tailed test is R = { z : z < −2.33}
(3) Test Statistics
The z-statistic is computed as follows:
(4) Decision about the null hypothesis
Since it is observed that z = −2.818 < zc = −2.33, it is then concluded that the null hypothesis is rejected.
Using the P-value approach: The p-value is p = 0.0024, and since p = 0.0024 < 0.01, it is concluded that the null hypothesis is rejected.
(5) Conclusion
It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that the population proportion p is less than p0, at the α=0.01 significance level.
Therefore, there is enough evidence to claim that the proportion of listeners of FM rock station has less than 85% students at 0.01 level of significance.
Confidence Interval
The 99% confidence interval for pp is: 0.806 < p < 0.8490.806<p<0.849.