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We would like to determine p, the probability that a tossed coin shows heads. Th

ID: 3159918 • Letter: W

Question

We would like to determine p, the probability that a tossed coin shows heads. The coin was tossed 200 times and it showed heads 117 times.

1. Construct a 90% confidence interval for p.

2. We wish to perform a hypothesis test at the 5% significance level that the coin is biased in favor of heads. Make sure to state the null and alternative hypotheses, state whether it is a left-, right- or two-tailed test, show all necessary steps to arrive at decision, and state your final conclusion in the context of this problem.

Explanation / Answer

1.

Note that              
              
p^ = point estimate of the population proportion = x / n =    0.585          
              
Also, we get the standard error of p, sp:              
              
sp = sqrt[p^ (1 - p^) / n] =    0.034840709          
              
Now, for the critical z,              
alpha/2 =   0.05          
Thus, z(alpha/2) =    1.644853627          
Thus,              
Margin of error = z(alpha/2)*sp =    0.057307866          
lower bound = p^ - z(alpha/2) * sp =   0.527692134          
upper bound = p^ + z(alpha/2) * sp =    0.642307866          
              
Thus, the confidence interval is              
              
(   0.527692134   ,   0.642307866   ) [ANSWER]

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2.Formulating the null and alternatuve hypotheses,          
          
Ho:   p   <=   0.5
Ha:   p   >   0.5 [HYPOTHESES]

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Hence, this is a right tailed test.

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As we see, the hypothesized po =   0.5      
Getting the point estimate of p, p^,          
          
p^ = x / n =    0.585      
          
Getting the standard error of p^, sp,          
          
sp = sqrt[po (1 - po)/n] =    0.035355339      
          
Getting the z statistic,          
          
z = (p^ - po)/sp =    2.404163056      
          
As this is a    1   tailed test, then, getting the p value,  
          
p =    0.008104771      

As P < 0.05, we   REJECT THE NULL HYPOTHESIS.      

Hence, there is significant evidence that the coin is biased in favor of heads. [CONCLUSION]

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