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Test the hypothesis using (a) the classical approach and (b) the P-value approach. Be sure to verify the requirements of the test. $$\begin{array}{l}H_{0}: p=0.55 \text { versus } H_{1}: p<0.55 \\\n=150 ; x=78 ; \alpha=0.1\end{array} $$

Short Answer

Expert verified
Verify requirements. Calculate test statistic and compare with critical value and p-value. Reject \(H_0\) if z-score < critical value or p < \( \alpha \).

Step by step solution

01

Verify the Requirements

Ensure that the sample size and conditions allow the use of the normal approximation for the binomial distribution. The general rule is that both \(np\) and \(n(1-p)\) should be greater than 5.
02

Calculate the Test Statistic

Use the sample proportion \( \bar{p} = \frac{x}{n} \) to find the test statistic. Also, compute the standard error \(SE = \frac{\bar{p}(1-\bar{p})}{n} \). Then, find the z-score using \( z = \frac{\bar{p} - p_0}{SE} \).
03

Classical Approach: Determine the Critical Value

For a left-tailed test with \( \alpha = 0.10 \), find the z-critical value from the standard normal distribution table.
04

Classical Approach: Compare Test Statistic to Critical Value

Compare the calculated z-score from Step 2 to the critical value from Step 3. If the z-score is less than the z-critical value, reject the null hypothesis \(H_0 \).
05

P-value Approach: Calculate the P-value

Determine the p-value associated with the calculated z-score from Step 2. Use standard normal distribution tables or software to find this p-value.
06

P-value Approach: Make a Decision

Compare the p-value with the significance level \( \alpha = 0.10 \). If the p-value is less than \( \alpha \), reject the null hypothesis \( H_0 \).

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Key Concepts

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

Classical Approach
The classical approach is one of the methods used to test hypotheses. To understand it, we need to follow a few steps. First, we identify the null hypothesis (place the null hypothesis here and any additional data for the specific exercise) and the alternative hypothesis. Next, we choose a significance level, often denoted as \( \alpha \), which is typically set to 0.05, but in this exercise, it's 0.10.
To use the classical approach, we calculate the test statistic. This statistic helps us understand how far our sample proportion is from the null hypothesis proportion. Then, we determine the critical value from the standard normal distribution table for our chosen \( \alpha \). The critical value marks the point beyond which we would reject the null hypothesis.
Finally, we compare the test statistic to the critical value. If the test statistic falls in the critical region (i.e., it's more extreme than the critical value), we reject the null hypothesis; otherwise, we don't.
P-value Approach
The P-value approach provides an alternative method for hypothesis testing. This method uses the calculated test statistic in a different way.
Firstly, after calculating the test statistic, we determine its corresponding P-value. The P-value is the probability that the observed data would occur if the null hypothesis were true.
To make a decision, we compare the P-value to our chosen significance level \( \alpha \). If the P-value is less than or equal to \( \alpha \), we reject the null hypothesis. This is because a small P-value indicates that the observed data is unlikely under the null hypothesis. In our exercise, a P-value less than 0.10 means we'd reject the null hypothesis, suggesting that the sample supports the alternative hypothesis.
Binomial Distribution
The binomial distribution plays a crucial role in hypothesis testing, especially when dealing with proportions. It describes the probability of obtaining a certain number of successes in a fixed number of independent trials, where each trial has the same probability of success.
For example, if we flip a coin 150 times and count how many times it lands on heads, we can use the binomial distribution to model this experiment. The probability of getting heads on any given flip is our 'success' probability (often denoted as \( p \)).
In our exercise, we assume the sample size (\( n = 150 \)) and the number of successes (\( x = 78 \)) follow a binomial distribution with an assumed population proportion (\( p = 0.55 \)). This helps in calculating the test statistic and further analysis.
Test Statistic
The test statistic is a standardized value that measures the degree of difference between the observed sample statistic and the null hypothesis parameter, expressed in terms of standard errors. In our exercise, the test statistic is calculated as a z-score.
To calculate the test statistic, we first find the sample proportion \( \hat{p} = \frac{x}{n} \). Then we compute the standard error, which accounts for the variability in the sample proportion:\( \text{SE} = \sqrt{\frac{p(1-p)}{n}} \).
Finally, we use these values in the z-score formula:\( z = \frac{\hat{p} - p_0}{\text{SE}} \), where \( p_0 \) is the null hypothesis proportion. This z-score helps us to decide whether to reject the null hypothesis by comparing it to the critical value or using the P-value.
Critical Value
The critical value is a threshold that determines the borders of the rejection region based on the chosen significance level \( \alpha \). In the classical approach, we compare the test statistic to this value.
To find the critical value for a left-tailed test (as in our exercise with \( \alpha = 0.10 \)), we refer to the z-table. The z-table provides critical values corresponding to different significance levels.
If our test statistic falls to the left of (i.e., is less than) this critical value, it means that the sample proportion is significantly lower than the null hypothesis proportion, and we reject the null hypothesis. If it doesn't, we fail to reject the null hypothesis.
Sample Proportion
The sample proportion (\( \hat{p} \)) is an important statistic in hypothesis testing, especially in tests about population proportions. It represents the ratio of successes to the total number of trials in the sample.
To find the sample proportion, we use the formula: \( \hat{p} = \frac{x}{n} \), where \( x \) is the number of successes, and \( n \) is the total sample size. In our exercise, with \( x = 78 \) and \( n = 150 \), the sample proportion is \( \hat{p} = \frac{78}{150} \).
This sample proportion is then used to calculate the test statistic, allowing us to perform further hypothesis testing steps, either using the classical approach or the P-value approach.

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