Solution :
The null and alternative hypothesis are,
H0 : p = 0.7 ........... Null hypothesis
Ha: p > 0.7 ........... Alternative hypothesis
Here, the test statistic z = 1.31
Now ,
> sign in Ha indicates that the test is ONE TAILED.
z = 1.31
So , using calculator ,
p-value = P(z > 1.75)
= 0.0951
p value = 0.0951
Since,
p value is greater than the significance level 0.01
Decision:
Fail to Reject the null hypothesis H0
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