Time Magazine states that the drop out rate for high school seniors is ten perce

Question

Time Magazine states that the drop out rate for high school seniors is ten percent. You conduct a test to see if the drop out rate for high school seniors is actually more than ten percent. One hundred high school seniors were randomly selected to see whether they dropped out. The number of these high school seniors who dropped out is 5. . What is the decision? Explain. ( = .01)

Time Magazine states that the drop out rate for high school seniors is ten percent. You conduct a test to see if the drop out rate for high school seniors is actually more than ten percent. One hundred high school seniors were randomly selected to see whether they had dropped out. The number of these high school seniors who dropped out is 15. State the null and alternative hypotheses. State the Alpha and define the parameter

a. Calculate the test statistic. ( = 0.05)

b. Determine the P-value

c. Whats the decision

Use as much detail as possible please!! thanks

Explanation / Answer

Null hypothesis H0:p=0.10

Alternative hypothesis Ha:p>0.10

The test will be right tailed as hypothesis has greater than sign.

Sample proportion phat=15/100=0.15

Test statistic Z=(pha-0.10)/sqrt(0.10*(1-0.10)/n)

=( 0.15-0.10)/sqrt(0.10*(1-0.10)/100)

=1.67

p-value=P(Z>1.67)= 0.0475 using excel function =1-NORMSDIST(1.67)

As p-value is less than 0.05 ,we reject null hypothesis and conclude that he drop out rate for high school seniors is actually more than ten percent

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