Question

Geoff has been running a restaurant in the city for many years. He knows from experience...

Geoff has been running a restaurant in the city for many years. He knows from experience that the proportion of customers that leave tips at this restaurant is 0.58. Geoff has recently opened a restaurant in a suburban area. It seems that tipping habits are different in the suburbs: Geoff believes that the proportion of customers that tip at his new restaurant (p) may be different to 0.58. He conducts a hypothesis test to find out.

The null and alternative hypotheses are:

H0: p = 0.58

Ha: p ≠ 0.58

Geoff takes a random sample of 115 customers and notes whether or not they leave a tip. In this sample, the proportion of people that leave a tip is 0.62.

a)Calculate the test statistic (z). Give your answer to 2 decimal places.

z =

b)Calculate the P-value. Give your answer as a decimal to 4 decimal places.

P-value =

0 0
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