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State DMV records indicate that of all vehicles undergoing emissions testing during the previous year, 70% passed on the firs
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Answer #1

Given : n=210 , X=120

The estimate of the sample proportion is ,

\hat{p}=\frac{X}{n}=\frac{120}{210}=0.5714

(a) The null and alternative hypothesis is ,

H_0:p=0.70 Vs H_a:p\neq 0.70

(b) The value of the test statistic is ,

Z_{stat}=\frac{\hat{p}-p_0}{\sqrt{\frac{p_0(1-p_0)}{n}}}=\frac{0.5714-0.70}{\sqrt{\frac{0.70(1-0.70)}{210}}}=-4.07

(c) The critical values are ,

Za a/2 20.05/2 = +1.96 ; From Z-table

The decision rule is ,

Reject Ho , if Z-stat>1.96 or Z-stat<-1.96

Decision : Here , Z-stat=-4.07<-1.96

Therefore , reject the null hypothesis.

(d) Conclusion : Reject the null hypothesis. there is significant difference in proportions.

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