A statistician is tasked with testing a company’s claim that its new test preparation book increases...

A statistician is tasked with testing a company’s claim that its new test preparation book increases the chance of passing an exam to more than 75%. For a random sample of 30 people who used the book, 25 people passed the exam. From the above data, test the validity of the company’s claim (i.e. answer the questions below). Use a significance level of 5% (i.e., a = 0.05).

(1) What are H0 and H1 in this problem? [Show your steps starting from the claim]

(2) What is the value of the Test Statistic? [write down formula, do the calculation, show result]

(3) What is the Critical Region? [write down answer as an inequality with numbers]

(4) Is your Test Statistic in the Critical Region – yes or no? [should follow from steps (2) and (3)]

(5) What is the P value? [I prefer you show Excel formula used and the result]

(6) What is your decision (i.e., do you Reject or Fail to Reject H0)? Summarize finding in plain English (use language from the summary table)

(7) Would the conclusion have been the be the same if a = 0.01?

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Expert Solution

orchestra answered 1 year ago

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