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In 1997, a survey of 880 households showed that 139 of them use e-mail. Use those sample results to test the claim that more than 15% of households use e-mail. Use a 0.05 significance level. Use this information to answer the following questions.

In 1997, a survey of 880 households showed that 139 of them use e-mail. Use those sample results to test the claim that more
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Answer #1

Option F) is correct.

H_{0}:p=0.15

H_{1}:p>0.15

We have for given example,                  
Population proportion value is =0.15              
x=139              
                  
n=880              
          
Estimate for sample proportion = \hat{p}=0.158
                  
Z test statistic formula for proportion                  
Z=\frac{\hat{p}-p}{\sqrt{\frac{pq}{n}}}
=\frac{0.158-0.15}{\sqrt{\frac{0.15*(1-0.15)}{880}}}
=0.665  

P value = 0.2530.......................by using Z table or by using Excel command =1-NORMSDIST(0.665)

P value is = 0.2530 > 0.05

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