The following information is provided: The sample size is N = 80
N=80, the number of favorable cases is X = 9 and the sample proportion is at α=0.05.
Step 1: The following null and alternative hypotheses need to be tested:
Ho: p = 0.20
Ha:p<0.20
This corresponds to a left-tailed test, for which a z-test for one population proportion needs to be used.
Step 2:
The z-statistic is computed as follows:
Step 3: Using the P-value approach: From the Z table , we find the value of -1.957 from the table to find p value. (region left to -1.957)
The p-value is p = 0.0252
and since p=0.0252<0.05, it is concluded that the null hypothesis is rejected.
Step 4: conclusion: It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that the population proportion p is less than p0, at the = 0.05 significance level.
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