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Test the claim that the proportion of people who own cats is smaller than 50% at the 0.01 significance level. The null and al
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Answer #1

The null and alternate hypothesis are:

H0: p\geq 0.5

H1: p<0.5

Hence 2nd option.

This is a left tailed test.

The test statistic is given by:

Z=\frac{\widehat{p}-p}{\sqrt{\frac{p(1-p)}{n}}}=\frac{0.48-0.5}{\sqrt{\frac{0.5(1-0.5)}{500}}}=-0.89

Since this is a left-tailed test, so the p-value is given by:

\\P(Z<-0.89)=P(Z>0.89)=1-P(Z<0.89)=1-0.81327\\ \\=0.18673\approx 0.19

Since p-value is greater than 0.01, so we do not have sufficient evidence to reject the null hypothesis H0.

Thus, we fail to reject the null hypothesis.

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