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A random sample of 500 observations produced a sample proportion equal to \(.38 .\) Find the critical and observed values of \(z\) for each of the following tests of hypotheses using \(\alpha=.05\). a. \(H_{0}: p=.30\) versus \(H_{1}: p>.30\) b. \(H_{0}: p=.30\) versus \(H_{1}: p \neq .30\)

Short Answer

Expert verified
For case a, the observed value of \(z\) is 3.86473 and the critical value is 1.645. For case b, the observed value of \(z\) is 3.86473 and the critical values are \(\pm 1.96\).

Step by step solution

01

Understanding the Hypotheses

The null hypothesis \(H_{0}: p=.30\) means that the population proportion being tested equals .30. The alternate hypotheses \(H_{1}\) can vary. In case a, \(H_{1}: p>.30\), we are testing if the proportion is greater than .30. In case b, \(H_{1}: p \neq .30\), we are testing if the proportion is not equal to .30.
02

Calculate the Standard Error for Proportion (SEp)

The standard error for proportion (SEp) is calculated using the formula \(\sqrt{(p(1-p)/n)}\), where \(p\) is the value of proportion under the null hypothesis and \(n\) is the sample size. Here, \(p = .30\) and \(n = 500\). So, \(SEp = \sqrt{(.30)(.70)/500} = 0.0207\).
03

Step 3a: Calculate Observed \(z\) for Case a

The observed \(z\) value for case a is calculated by subtracting the null hypothesis proportion from the observed sample proportion and dividing by the SEp. Here, \(z = (.38 - .30)/0.0207 = 3.86473\).
04

Step 3b: Calculate Observed \(z\) for Case b

For case b, the observed \(z\) value remains the same as case a, \(z = 3.86473\). This is because the observed proportion and the standard error remain the same.
05

Step 4a: Find the Critical \(z\) for Case a

For the one-tailed test in case a (\(H_{1}: p>.30\)), the critical \(z\) value can be obtained from a standard normal distribution table for a significance level of .05. This is \(z = 1.645\).
06

Step 4b: Find the Critical \(z\) for Case b

For the two-tailed test in case b (\(H_{1}: p \neq .30\)), the critical \(z\) value for a significance level of .05 divided by 2 (.025) is used and this value is taken as positive and negative because it's a two-tailed test. This is \(z = \pm 1.96\).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Proportion Test
The proportion test is a statistical method used to determine if there is enough evidence to reject a hypothesis about a population proportion. Imagine you're testing whether a coin is biased or not. If you flip a coin many times, the proportion of heads should be close to 0.5 if the coin is fair. In hypothesis testing, this could be your null hypothesis.
  • **Null Hypothesis (\(H_{0}\)):** A statement that there is no effect or no difference, often written as \(p = p_0\) where \(p_0\) is the hypothesized population proportion.
  • **Alternate Hypothesis (\(H_{1}\)):** A statement that contradicts the null hypothesis. For example, \(H_{1}: p > p_0\) or \(H_{1}: p eq p_0\).

In the provided exercise, the researcher is investigating if the actual proportion differs from 0.30. Using evidence from the sample, the goal is to reach a conclusion about the population.
Standard Error Calculation
Standard error (SE) is a statistical metric used to measure the accuracy with which a sample represents a population. It's akin to calculating how much a sample proportion can be expected to fluctuate from the true population proportion. For proportion testing, it is calculated using the formula:
\[SE(p) = \sqrt{\frac{p(1-p)}{n}}\]where \(p\) is the hypothesized population proportion, and \(n\) is the sample size.
Using the exercise example:- Given a hypothesized proportion \(p = 0.30\) and sample size \(n = 500\), - the standard error calculation yields \(SE(p) = \sqrt{(0.30 \times 0.70) / 500} = 0.0207\).
The smaller the standard error, the more precise the statistical estimate.
Understanding how standard error works helps in realizing how reliable the sample estimate is in relation to the actual population proportion.
Critical Value Determination
The critical value is an essential threshold in hypothesis testing that helps decide whether to reject the null hypothesis. Essentially, it acts as a dividing line derived from a standard normal distribution under the chosen significance level, denoted by \(\alpha\).
  • **One-Tailed Test:** The critical value is one-sided. For \(\alpha = 0.05\), it typically corresponds to a \(z\) value of 1.645 in a right-tailed test.
  • **Two-Tailed Test:** The critical value is two-sided. Here, the significance level \(\alpha\) is split across both tails of the distribution. This means each tail gets \(\alpha/2\). For two tails, \(z\) values might be \(\pm 1.96\) for a typical \(\alpha = 0.05\).

Using these critical values, we can determine if our observed \(z\)-value indicates statistical significance. If the observed \(z\)-value lies beyond this threshold, the null hypothesis can be rejected.
One-Tailed and Two-Tailed Tests
In hypothesis testing, selecting between one-tailed and two-tailed tests is an important decision that determines how you interpret the data. It hinges on the research question or the hypothesis being tested.
  • **One-Tailed Test:** Used when the research hypothesis predicts a direction of the effect. You wish to test if the proportion is greater than or less than the specified value. For example, in the exercise, \(H_{1}: p > 0.30\) is one-tailed because we only care if the proportion is greater than 0.30.
  • **Two-Tailed Test:** Used when the research hypothesis does not predict a direction. Any difference from the specified value is of interest, be it higher or lower. Like \(H_{1}: p eq 0.30\), it checks both directions.

By defining your tests as either one-tailed or two-tailed, you place constraints on statistical decision-making that align with your original hypothesis.

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Most popular questions from this chapter

In each of the following cases, do you think the sample size is large enough to use the normal distribution to make a test of hypothesis about the population proportion? Explain why or why not. a. \(n=30\) and \(p=.65\) b. \(n=70\) and \(p=.05\) c. \(n=60\) and \(p=.06\) d. \(n=900\) and \(p=.17\)

Make the following hypothesis tests about \(p\). a. \(H_{0}: p=.45, \quad H_{1}: p \neq .45, \quad n=100, \quad \hat{p}=.49, \quad \alpha=.10\) b. \(H_{0}: p=.72, \quad H_{1}: p<.72, \quad n=700, \quad \hat{p}=.64, \quad \alpha=.05\) c. \(H_{0}: p=.30, \quad H_{1}: p>.30, \quad n=200, \quad \hat{p}=.33, \quad \alpha=.01\)

In 2006, the average number of new single-family homes built per town in the state of Maine was \(14.325\) (www.mainehousing.org). Suppose that a random sample of 42 Maine towns taken in 2009 resulted in an average of \(13.833\) new single-family homes built per town, with a standard deviation of \(4.241\) new single-family homes. Using the \(5 \%\) significance level, can you conclude that the average number of new single-family homes per town built in 2009 in the state of Maine is significantly different from \(14.325\) ? Use both the \(p\) -value and critical-value approaches.

The manager of a service station claims that the mean amount spent on gas by its customers is \(\$ 15.90\) per visit. You want to test if the mean amount spent on gas at this station is different from \(\$ 15.90\) per visit. Briefly explain how you would conduct this test when \(\sigma\) is not known.

In a 2009 nonscientific poll on the Web site of the Daily Gazette of Schenectady, New York, readers were asked the following question: "Are you less inclined to buy a General Motors or Chrysler vehicle now that they have filed for bankruptcy?" Of the respondents, \(56.1 \%\) answered "Yes" (http://www. dailygazette.com/polls/2009/jun/Bankruptcy/). In a recent survey of 1200 adult Americans who were asked the same question, 615 answered "Yes." Can you reject the null hypothesis at the \(1 \%\) significance level in favor of the alternative that the percentage of all adult Americans who are less inclined to buy a General Motors or Chrysler vehicle since the companies filed for bankruptcy is different from \(56.1 \%\) ? Use both the \(p\) -value and the critical-value approaches.

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