In: Statistics and Probability
51% of students entering four-year colleges receive a degree within six years. Is this percent smaller than for students who play intramural sports? 123 of the 292 students who played intramural sports received a degree within six years. What can be concluded at the level of significance of αα = 0.01?
(a)
For this study, we should use z-test for a population proportion.
(b)
We have to test for null hypothesis
against the alternative hypothesis
(a)
Our test statistics is given by
Here,
Number of observations
(b)
[Using R-code 'pnorm(-3.034313)']
(c)
Level of significance
Here, we observe that
(d)
We reject our null hypothesis if
So, we reject our null hypothesis.
(e)
Hence, based on the given data we can conclude as follows.
The data suggest the population proportion is significantly smaller than 51% at α = 0.01, so there is sufficient evidence to conclude that the population proportion of students who played intramural sports who received a degree within six years is smaller than 51%.
(f)
The interpretation of p-value is as follows.
If the sample proportion of students who played intramural sports who received a degree within six years is 42% and if another 292 such students are surveyed then there would be a 0.12% chance of concluding that fewer than 51% of all students who played intramural sports received a degree within six years.
(g)
Level of significance denotes probability of type I error. So, the interpretation of level of significance is as follows.
If the population proportion of students who played intramural sports who received a degree within six years is 51% and if another 292 students who played intramural sports are surveyed then there would be a 1% chance that we would end up falsely concluding that the proportion of all students who played intramural sports who received a degree within six years is smaller than 51%.