Question

Some people are concerned that new tougher standards and​ high-stakes tests adopted in many states have driven up the high school dropout rate. The National Center for Education Statistics reported that the high school dropout rate for the year 2014 was 6.5​%. One school district whose dropout rate has always been very close to the national average reports that 125 of their 1767 high school students dropped out last year. Is this evidence that their dropout rate may be​ increasing? Explain.

Compute the test statistic?

​(Round to two decimal places as​ needed.)

What is the P-value

Answer 1

Ho :   p =    0.065                  
H1 :   p >   0.065       (Right tail test)          
                          
Number of Items of Interest,   x =   125                  
Sample Size,   n =    1767                  
                          
Sample Proportion ,    p̂ = x/n =    0.0707                  
                          
Standard Error ,    SE = √( p(1-p)/n ) =    0.0059                  
Z Test Statistic = ( p̂-p)/SE = (   0.0707   -   0.065   ) /   0.0059   =   0.98
                          
  
p-Value   =   0.1638   [Excel function =NORMSDIST(-z)              
Decision:   p value>α ,do not reject null hypothesis                       
There is not enough evidence that their dropout rate may be​ increasing