Alternate Hypothesis :
It is known that :-
Under Null Hypothesis ;
Under Null Hypothesis ;
Thus the standardized test statistic is given by :-
Given :-
z = Observed value of Z
The test is a both-tailed test.
P-value = 2 min{ P(Zz) , P(Zz) } = 2 min{ P(Z-2.37) , P(Z-2.37) } = 2 min{0.009,0.991} = 20.009 = 0.018
[We get the above probabilities from the Standard Normal table]
Level of significance = 0.01
We see that ; p-value >
Thus the proper decision is :-
B. Fail to reject H0. There is not enough evidence at the 1% level of significance to reject the claim.
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