If Jay gets paid $125 for working 10 hours, how much does he get paid for one hour?
2 answers:
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Solution :
It is given that :
(Null hypothesis,
is also correct)
(Alternate hypothesis, also called
)
This is a lower tailed test,
Therefore,
Sample proportion,
= 0.04
And claimed proportion, P = 0.05
Significance level, = 0.01
Therefore, calculating the statistics, we get
Standard deviation of
Test statistic,
Now since this is a lower tailed test, p-value =
Rejection Criteria : Reject if p-value < α .
Conclusion : Since the p-value , we fail to reject the null hypothesis. There is insufficient evidence that p is less than 0.05