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A random sample of 410 observations produced a sample proportion equal to 0.37. Find the critical and observed values of z fo

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Solution :

This is the two tailed test .

The null and alternative hypothesis is

H0 : p = 0.30

Ha : p \neq 0.30

\hat p = 0.37

P0 = 0.30

1 - P0 = 1 - 0.30 = 0.70

\alpha = 0.02

\alpha/2 = 0.01

Z\alpha/2 = Z0.01 ± 2.33

z critical left = z <-2.33

z critical right = z > 2.33

Test statistic = z=

= \hat p - P0 / [\sqrtP0 * (1 - P0 ) / n]

= 0.37 - 0.30/ [\sqrt(0.30 * 0.70) / 410 ]

Test statistic = z observed = 3.09

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