In: Statistics and Probability
The mayor of a town has proposed a plan for the annexation of a new community. A political study took a sample of 900 voters in the town and found that 40% of the residents favored annexation. Using the data, a political strategist wants to test the claim that the percentage of residents who favor annexation is more than 36%. Testing at the 0.05 level, is there enough evidence to support the strategist's claim? Step 1 of 6 : State the null and alternative hypotheses.
Null hypothesis
   
          
   
Alternative hypothesis  
           
          
   
We have for given example,      
       
Population proportion value is =0.36      
   
x=360          
          
   
n=900          
Level of significance =   0.05  
       
Estimate for sample proportion = 0.4      
   
          
   
Z test statistic formula for proportion
P value is 0.0062.....................by using Excel command 1-NORMSDIST(2.5)
P value is 0.0062 < 0.05
Therefore, reject H0.