Question #337181

A study found that 68% of the population owns a home in a random sample of 150 households 92 owned a home at the a=0.01 level is there enough evidence to reject the claim

1
Expert's answer
2022-05-05T04:22:43-0400

The following null and alternative hypotheses for the population proportion needs to be tested:

H0:p=0.68H_0:p=0.68

Ha:p0.68H_a:p\not=0.68

This corresponds to a two-tailed test, for which a z-test for one population proportion will be used.

Based on the information provided, the significance level is α=0.01,\alpha = 0.01, and the critical value for a two-tailed test is zc=2.5758.z_c = 2.5758.

The rejection region for this two-tailed test is R={z:z>2.5758}.R = \{z: |z| > 2.5758\}.

The z-statistic is computed as follows:


z=p^p0p0(1p0)n=921500.680.68(10.68)150z=\dfrac{\hat{p}-p_0}{\sqrt{\dfrac{p_0(1-p_0)}{n}}}=\dfrac{\dfrac{92}{150}-0.68}{\sqrt{\dfrac{0.68(1-0.68)}{150}}}1.75035\approx-1.75035

Since it is observed that z=1.75035<2.5758=zc,|z| = 1.75035<2.5758=z_c, it is then concluded that the null hypothesis is not rejected.

Using the P-value approach:

The p-value is p=2P(Z<1.75035)=0.080058,p=2P(Z<-1.75035)=0.080058, and since p=0.080058>0.01=α,p=0.080058>0.01=\alpha, it is concluded that the null hypothesis is notrejected.

Therefore, there is not enough evidence to claim that the population proportion pp is different than 0.68,0.68, at the α=0.01\alpha = 0.01 significance level.


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