Question

Consider the following hypotheses. Ho p 0.42 H1 : p #0.42 Given that p 0.36, n200, and a 0.05, answer the following questions

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Answer #1

Solution:

Given: Hypothesis:

H_{0}: p = 0.42

H_{1}: p \neq 0.42

Sample proportion = \bar{p}=0.36

Sample size = n = 200

Level of significance = \alpha = 0.05

Part a)

Find z critical value(s)

Since H_{1}: p \neq 0.42 is not equal to type, that is non-directional , thus this is two tailed test.

Thus we find two z critical values.

Find an Area = \alpha / 2 = 0.05 /2= 0.025

Look in z table for area = 0.0250 or its closest area and find z value

.02 07 08 .00 .01 .03 04 .05 .06 .09 3.4 .0003 .0003 .0003 .0003 .0003 .0003 .00р3 .0003 .0003 .0002 3.3 .0005 0005 .0005 .00

Area 0.0250 corresponds to -1.9 and 0.06

thus z = -1.96

this is z critical value for left tailed 0.0250 area

similarly z critical value for right tailed 0.0250 area would be same but positive, that is: z = 1.96

thus z critical values are: ( -1.96 , 1.96 )

Calculate test statistic:

z= \frac{\bar{p}-p}{\sqrt{\frac{p\times (1-p)}{n}}}

z= \frac{0.36-0.42}{\sqrt{\frac{0.42\times (1-0.42)}{200}}}

z= \frac{-0.06 }{\sqrt{\frac{0.42\times 0.58}{200}}}

z= \frac{-0.06 }{\sqrt{0.001218 }}

z= \frac{-0.06 }{0.0349 }

z=-1.72

Choose the correct answer:

Since z test statistic = -1.72 is neither < -1.96 , nor greater than 1.96, we do not reject H0. That is p = 0.42 is true.

thus correct answer is:

B. Do not reject H0. There is insufficient evidence that p \neq 0.42

Part b) Find p-value:

p-value = 2 X P( Z < z test statistic value)

p-value= 2 X P( Z < -1.72)

Thus look in z table for z = -1.7 and 0.02 and find area.

Thus from z table we get:

P( Z < -1.72)= 0.0427

Thus

p-value= 2 X P( Z < -1.72)

p-value= 2 X 0.0427

p-value = 0.0854

p-value= 0.085

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