In order to start a small business, a student takes out a simple interest loan for $3000.00 for 3 months at a rate of 11.25%.
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Answer:
We can assume that the statistic is
So the p value obtained was a very high value and using the significance level given we have
so we can conclude that we have enough evidence to FAIL to reject the null hypothesis, and we can said that at 5% of significance the true proportion of interest is not different from 3/5
Step-by-step explanation:
Concepts and formulas to use
We need to conduct a hypothesis in order to test the claim that the true proportion is equal to 3/5 or not.:
Null hypothesis:
Alternative hypothesis:
When we conduct a proportion test we need to use the z statistic, and the is given by:
(1)
The One-Sample Proportion Test is used to assess whether a population proportion is significantly different from a hypothesized value
.
Calculate the statistic
We can assume that the statistic is
Statistical decision
It's important to refresh the p value method or p value approach . "This method is about determining "likely" or "unlikely" by determining the probability assuming the null hypothesis were true of observing a more extreme test statistic in the direction of the alternative hypothesis than the one observed". Or in other words is just a method to have an statistical decision to fail to reject or reject the null hypothesis.
The significance level provided . The next step would be calculate the p value for this test.
Since is a bilateral test the p value would be:
So the p value obtained was a very high value and using the significance level given we have
so we can conclude that we have enough evidence to FAIL to reject the null hypothesis, and we can said that at 5% of significance the true proportion of interest is not different from 3/5