Suppose that the CEO of U-Store-It claims that more than 2/3 of his employees ca

Question

Suppose that the CEO of U-Store-It claims that more than 2/3 of his employees carry secondary health insurance. You decide to test his claim using significance level of =0.05. A sample of 150 employees finds that 108 of them carry secondary health insurance. First you set up your hypotheses as follows:

Ho: P is less than or equal to 0.67

H1: P is greater than 0.67

Then you compute your sample statistic, and get the following:

z1.30

Compute the probability of getting a sample statistic at least as extreme as z=1.30 and then interpret this probability value. Remember that in a one-tailed test such as this, you do not need to multiply your p-value by two.

Interpret:

a) the p-value is small enough to prove the claim

b) the p-value is not small enough to prove the claim

Explanation / Answer

normalcdf(1.3,10) =0.97. b) the p-value is not small enough to prove the claim remember, if it's less than Z=1.645, you won't reject for 1 tail, 1.96 for two tail.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.