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Test the hypothesis using the value approach Be sure to verify the requirements of the test Hy 7 versus Hyp>07 250 180 001 Is
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Answer #1

H0: p = 0.7, Null Hypothesis
H1: p > 0.7, Alternate Hypothesis

n = 250, x = 180, a = 0.01

n*p*(1-p) = 250*0.7*(1-0.7) = 52.5
YES, it is greater than 10

mean (\mu) = n*p = 250*0.7 = 175
standard deviation (0) = (1 - p/n = 0.7* 0.3/250 = 0.029

We are interested in testing the hypothesis
Null Hypothesis - - > Ho: p= po Alternate Hypothesis - - > H1 :p> po

Now, the value of test static van be found out by following formula:
Zo = X – npo npo(1 - po) 180.0 – 250.0.7 250.0.7(1 -0.7) = 0.6901


Since P-value of a two tailed test is equal to 2(1 - 6(20)
P=2(1 – 0 (0.6901)) = 2(1 - 0.7549) = 0.4902

Since \alpha = 0.01, the boundaries of the critical region are Z_{0.005} = 2.576 and - 20.005 = -2.576 and we note that Z_0 does not falls in the critical region. Therefore, we fail to reject H_0 .

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