Question

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.

Answer 1

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.