document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=461577>Question 461577</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that an insurance agent claims that less than 5% of his life insurance policies ever have to pay out. You decide to test his claim at the a=0.01 significance level. A sample of a 100 policies from last year finds that 7 out of them had to pay out. With a critical value of -2.33, compute the sample statistic. nora1.skelton@yahoo.com<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #316513 by </B><A HREF=/tutors/aboutme.mpl?userid=edjones><B>edjones(8007)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=edjones><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=edjones><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=316513\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> H[o]:<.05<BR>\n" );
document.write( "p[o]=.05, q[o]=.95, n=100<BR>\n" );
document.write( "(P-p[o])/sqrt((p[o]*q[o])/n)<BR>\n" );
document.write( "=(.07-.05)/sqrt((.05*.95)/100)<BR>\n" );
document.write( "=.02/.022<BR>\n" );
document.write( "=0.91 the sample statistic.<BR>\n" );
document.write( "Since alpha for a 0.01 significance level is greater than 2.33 and the sample statistic is 0.91 then the null hypothesis in not is not rejected.<BR>\n" );
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document.write( "Ed<BR>\n" );
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