Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim
Answer)
Ho : p = 0.00034
Ha : p is not equal to 0.00034
N = sample size = 420089
p = 120/420089
First we need to check the conditions of normality
That is if n*p and n*(1-p) both are greater than 5 or not
N*p = 120 and n*(1-p) = 419969
As both the conditons are met
We can use standard normal z table to conduct the test
Test statistics z = (observed p - claimed p)/standard error
Standard error = √{claimed p*(1-claimed p)}/√n
Claimed p = 0.00034
Observed p = 120/420089
N = 420089
Test statistics z = -1.91
From z table, p(z<-1.91) = 0.0281
But our test is two tailed
So, p-value is = 2*0.0281 = 0.0562
As the obtained p-value is greater than the given significance level (0.001) we fail to reject the Ho
So, we do not have enough evidence to support the claim
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Z=
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