1. Sample proportion who preferred DSL, p = 350/1000=0.350
Estimated proportion who prefer DSL, P = 0.416
Sample size, n = 1000
Level of significance, a (pronounced alpha) = 0.10.
Now, we will state the Null & Alternate Hypotheses as follows -
Null Hypothesis, Ho: p=P=0.416
Alternate Hypothesis, H1: p-P<0
Finding Standard Deviation, s, of the sampling distribution = {P*(1-P)/n}^0.5 = {0.416*0(1-0.416)/1000}^0.5 = 0.016
z-score =(p-P)/s = (0.35-0.416)/0.016 = -4.234
z-significant (corresponding to a=0.1) from the Z table = -1.28
Since our (negative) z-score is less than the (negative) z-significant value, we reject the null hypothesis. Therefore, we may say that the population proportion that prefers DSL has decreased.
Going further into the question, we can see that the 1st sentence of the question is the indicator of Null Hypothesis and the 2nd sentence tells about sample proportion from which we can get Alternate Hypothesis.
The Hypothesized population proportion is 0.416 as mentioned earlier in the answer and is denoted by P.
The sample proportion is 350/1000=0.350 as mentioned earlier in the answer and is denoted by p.
The sample size is 1000 and is denoted by n.
The population Standard Deviation is N/A while we can estimate the Standard Deviation of the sampling distribution as per the formula, s={P*(1-P)/n}^0.5.
The significance level as given in question is, a(pronounced as alpha) is 0.10.
The Null & Alternative Hypotheses are already defined earlier.
The test is a left tailed test as we are testing whether sample proportion is significantly less than the population (hence the Alternative Hypothesis has a less than operator).
The critical value is determined as z-significant earlier.
The rejection region is the entire region corresponding to the left of the z-significant point/value in the Normal Distribution Curve since our test is a left tailed test.
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