Ho : p = 0.2
H1 : p ╪ 0.2
(Two tail test)
p0 = .20
n = 500
x = 88
p = x/n = 88/500 = .176
alpha = .05
Z = (p-p0)/sqrt(p0*p0'/n) = (.176-.20)/sqrt(.2*.8/500) = -1.3416
The p-value is = P(t<-1.3416) = 0.0899
The alpha = .05 for 2 tailed test, therefore, for each tail a rejection region of alpha/2 = .05/2 = .025
Now, our p-value of .0899 > .025 means that we fail to reject null hypothesis. And conclude that the claim that 20% of its customers have at least 2 telephone lines.
A telephone company claims that 20% of its customers have at least 2 telephone lines. The...
I Posted this question two days ago but the answers was given using p-values and I want it using confidence intervals. Thank you for all of your help. A telephone company claims that 20% of its customers have at least two telephone lines. The company selects a random sample of 500 customers and finds that 88 have two or more telephone lines. If alpha = 0.05, test the company's claim using confidence intervals.
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