N = 20 alpha = 0.05, 1 tail Null hypothesis: The coin is fair Alternative hypothesis: The coin is biased towards heads Obtained value: 17 heads
a) What is the significance?
b) What is the Critical Value?
c) Do we reject the null?
a) What is the significance?
Significance level = α = 0.05
b) What is the Critical Value?
Critical Z value = 1.645
(by using z-table)
c) Do we reject the null?
Test statistic = Z = (P – p)/sqrt(pq/n)
P = x/n = 17/20
Z = (0.85 - 0.50)/sqrt(0.50*0.50/20) = 3.130495
Z > Critical Z value = 1.645
So, we reject the null hypothesis.
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