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Al. a certain college it is estimated that at most \(25 \%\) of the students ride bicycles to class. Does this seem to be a valid estimate if, in a random sample of 90 college students, 28 are found to ride bicycles to class? Use a 0.05 level of significance

Short Answer

Expert verified
The observed data does not support the estimate made by the college that at most 25% of the students ride bicycles to class. The proportion could be higher than 0.25.

Step by step solution

01

Identify Null and Alternative Hypotheses

The null hypothesis \(H_0\) assumes that the proportion \(p\) of students who ride bicycles to class is at most 0.25. Specifically, \(H_0: p \leq 0.25\). The alternative hypothesis \(H_1\) assumes that this proportion is more than 0.25. Specifically, \(H_1: p > 0.25\).
02

Compute Sample Proportion

The sample contains n = 90 students, among which x = 28 ride bicycles to class. Hence the sample proportion \(\hat{p}\) is given by \(\hat{p} = x/n = 28/90 = 0.311.\)
03

Perform Hypothesis Test

We perform a one-tail test of proportion using z statistics. The test statistic z is given by \(z = (\hat{p}-p_0)/\sqrt{p_0(1-p_0)/n}\) where \(p_0 = 0.25\) is the proportion under the null hypothesis. Substituting in the given values, we find \(z = (0.311 - 0.25)/\sqrt{0.25 \times 0.75 / 90} ≈ 1.778\). Looking up the Z-table for our calculated z-value we find the p-value is \(0.0377\).
04

Decision Making

We make the decision by comparing the p-value with the level of significance \(α = 0.05\). If the p-value is less than α, we reject the null hypothesis. In this case, because the p-value of \(0.0377\) is less than \(0.05\), we reject the null hypothesis that the proportion of students who ride bicycles to class is less than or equal to 0.25.

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Key Concepts

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

Null and Alternative Hypothesis
Understanding the null and alternative hypothesis is the cornerstone of hypothesis testing. In statistics, the null hypothesis (\( H_0 \)) represents a statement of no effect or no difference and is the assumption that we seek to test. In our exercise, the null hypothesis is formulated as \( H_0: p \leq 0.25 \), meaning that the true proportion (\( p \) ) of students who ride bicycles to class is believed to be at most 25%.

Contrarily, the alternative hypothesis (\( H_1 \)) is what we believe could be true if the null hypothesis is rejected. It's essentially the opposite of what's stated in \( H_0 \). For our example, the alternative hypothesis is \( H_1: p > 0.25 \), indicating the possibility that more than 25% of students could be riding bicycles to class. The purpose of conducting a hypothesis test is to determine whether there is enough evidence to reject the null hypothesis in favor of the alternative hypothesis.
Sample Proportion Calculation
Sample proportion calculation involves finding the fraction of items in a sample that exhibit a certain characteristic. To compute the sample proportion (\( \hat{p} \)), we divide the number of 'successes' by the total number of observations in the sample. In our scenario, the number of students riding bicycles to class (\( x = 28 \)) constitutes our successes, and the total number of students surveyed (\( n = 90 \)) is our observations.

Therefore, the sample proportion is calculated as \( \hat{p} = x / n = 28 / 90 = 0.311 \) . This value is an estimate of the true population proportion and is used as the basis for hypothesis testing where we compare it against the proportion stated in the null hypothesis.
One-Tail Test of Proportion
A one-tail test of proportion is a directional hypothesis test that is used when we want to determine if a sample proportion is significantly greater than or less than a stated value, but not both. Our exercise requires us to perform a one-tail test because we are interested in whether the true proportion of students who ride bicycles to class exceeds 25%, not if it is simply different from 25%.

For one-tail tests, the significance level (\( \alpha \)) is all allocated to testing the statistical significance in the single direction specified by the alternative hypothesis. A one-tail test provides a more powerful test for detecting an effect in one direction by not taking into account a difference in the opposite direction.
Z Statistics
Z statistics, also known as a z-score, is a numerical measurement that describes a value's relationship to the mean of a group of values. It is measured in terms of standard deviations from the mean. When conducting a hypothesis test for proportions, the z-score is calculated to find out how far, in standard deviations, the sample proportion is from the null hypothesis proportion. The formula \( z = (\hat{p}-p_0)/\sqrt{p_0(1-p_0)/n} \) is used, where \( \hat{p} \) is the sample proportion, \( p_0 \) is the null hypothesis proportion, and \( n \) is the sample size.

In our exercise, the z-score helps us determine whether the observed sample proportion of 0.311 is statistically significantly different from the hypothesized proportion of 0.25, when considering the natural variability in the sample.
P-Value Interpretation
The p-value is a crucial concept in hypothesis testing as it helps interpret the results. It quantifies the probability of observing a test statistic as extreme as, or more extreme than, the one calculated from the sample data, given that the null hypothesis is true. A small p-value indicates that the observed data is unlikely under the assumption of the null hypothesis and therefore provides evidence against \( H_0 \).

In our example, the p-value is 0.0377, which is less than the significance level \( \alpha = 0.05 \). This means there's less than a 5% chance of observing a sample proportion as large as 0.311 if the true proportion is at most 0.25. Consequently, we reject the null hypothesis because the p-value is below our predetermined threshold for significance, which suggests that a higher proportion of students might be riding bicycles than previously thought.

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