SOLUTION: Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is  = 0.55 and the a

Question 1158202: Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is  = 0.55 and the alternate is  .55. A random sample of 400 families who planned to buy a vacation residence revealed that 228 families want a condominium. What decision should be made regarding the null hypothesis?..........
A. Do not reject it
B. Reject it
C. Cannot accept nor reject it based on the information given
D. Purchase a condominium.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
228 is 57% of 400
assuming randomness, etc.
this is a 1-sample proportion
test statistic at the 5% level (not given ) for a two way test is reject Ho if |z|>2.576
z=(p hat- po)/sqrt(p*(1-p)/n)
=0.02/sqrt(0.55*0.45/400)
=0.02/0.0249=0.804
fail to reject Ho, insufficient evidence to say there is a difference from 0.55.
p=0.42
A
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