Question

Proportion Problem. Each year Delta Dental does a survey of parents concerning the tradition of the Tooth Fairy. A random sample of 1,058 parents were asked about how much money they leave for a tooth and questions concerning how their child responded to the concept of the Tooth Fairy. In one question, 508 parents indicated that their child saved the money they got for their tooth. You are asked to Test to see if this proportion is different from .5. Use an alpha level of .05. Based on your test result, you would conclude the proportion was different from .5. This is a true/false question.

Group of answer choices:

True

False

Answer 1

null Hypothesis: Ho: alternate Hypothesis: Ha: 0.500 0.500 1.960 for 0.05 level with two tailed test, critical value of z= Decision rule: reject Ho if absolute value of test statistic Izl>1.96 sample success sample size 508 1058.0 std error =Se = (p*(1-p)/n) = 0.0154 sample proportion Ô x/n= 0.4802 test stat = 2 = (0-p)/Se= -1.29

as test statistic does not fall in rejection region , we can not reject null hypothesis

False