Question

. A random sample of 100 people is selected, of whom 77 are right-handed. We concern about whether the proportion of people who are right-handed is different from 80%. Use these sample data to test the claim at significance level 0.05. Write out the full procedure that we went over in class.

Answer 1

Total number of sample (n) = 100
number of favourable events (X) = 77

We are interested in testing the hypothesis

Since, the test is two-tail test at

Decision Rule: Reject the null hypothesis if the test statistic value is less than the critical value -1.96 or greater than the critical value 1.96
The statistic value, -0.75 is between the critical values -1.96 and 1.96. Therefore, we fail to reject the null hypothesis.