(a)
Data:
n1 = 694
n2 = 536
p1 = 0.418
p2 = 0.31
Hypotheses:
Ho: p1 ≤ p2
Ha: p1 > p2
Decision Rule:
α = 0.005
Critical z- score = 2.575829304
Reject Ho if z > 2.575829304
Test Statistic:
Average proportion, p = (n1p1 + n2p2)/(n1 + n2) = (694 * 0.418 + 536 * 0.31)/(694 + 536) = 0.370936585
q = 1 - p = 1 - 0.370936585365854 = 0.629063415
SE = √[pq * {(1/n1) + (1/n2)}] = √(0.370936585365854 * 0.629063414634146 * ((1/694) + (1/536))) = 0.027777137
z = (p1 - p2)/SE = (0.418 - 0.31)/0.0277771365990409 = 3.888
(b)
p- value = 0.0001
(c)
p- value ≤ α
(d)
Reject Ho and accept Ha
(e)
There is sufficient evidence that p1 > p2
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