SOLUTION: Ayuh Fishin' Kamps on Moosehead lake advertises that 80% of its guests manage to catch fish every day they are there. A random sample taken last summer showed that 58 out of 80 gue

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Question 597285: Ayuh Fishin' Kamps on Moosehead lake advertises that 80% of its guests manage to catch fish every day they are there. A random sample taken last summer showed that 58 out of 80 guests did catch at least one fish every day.
A. What is the null hypothesis?
B. Is this 1-tailed or 2-tailed test?
C. What is the critical value for Z(alph=0.05)?
D.Do we reject or fail to reject the null hypothesis?

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Ayuh Fishin' Kamps on Moosehead lake advertises that 80% of its guests manage to catch fish every day they are there. A random sample taken last summer showed that 58 out of 80 guests did catch at least one fish every day.
A. What is the null hypothesis?
Ho: p >= 0.8
Ha: p < 0.8
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B. Is this 1-tailed or 2-tailed test?
Ha indicates it is a 1-tailed test.
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C. What is the critical value for Z(alph=0.05)?
z = 1.645
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D.Do we reject or fail to reject the null hypothesis?
Sample proportion: 58/80 = 0.725
z(0.725) = (0.725-0.80)/sqrt(0.8*0.2/80) = -1.6771
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p-value = P(z < -1.6771) = 0.0476
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Since the p-value is less than 5%, reject Ho.
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Cheers,
Stan H.