Question 898981: The government believes that at least seven out of every ten citizens read its newspaper. A survey conducted by a Non Governmental Organisation shows that out of twenty five citizens, who read newspapers, only fifteen prefer the government press to independent press. Test the government’s belief at 1% level of significance and comment. You have been approached by the organisation, as a business research student to conduct the necessary tests and advise on whether to accept or not, the government’s claim.
Answer by ewatrrr(24785)   (Show Source):
You can put this solution on YOUR website!
Hi
Ho: p >= 0.7 (government claim)
Ha: p < 0.7 (sample of 25: p = 15/25 = 3/5 = .6)
---
test stat:: z(.6) = (0.6-0.7)/sqrt[0.7*0.3/25] = -.1/.0917 = -1.09
-----
p-value = P(t < -1.09 when df = 24) = tcdf(-1.09,100,24) = .1433 0r 14.33%
---------------------
Conclusion: since the p-value > 1%, accept the government's claim
|
|
|
