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Chapter 12: Hypothesis Tests – Large Samples

527

= (10 - 120

0.05)/2.3875 = 1.6754.

: For a significance level of

= 0.01, reject the null hypothesis if the

computed test statistic value

= 1.6754 < -

= -2.33.

Conclusion:

Since

= 1.6754 > -

= -2.33, then the null hypothesis

will not be rejected. There is insufficient sample evidence to confirm your

professor’s claim. That is, there is insufficient sample evidence to claim that

less than 5% of the student population on your campus is left handed, at the

1% level of significance.

Note:

This means that there is not a significant difference between the

sample proportion of 10/130 = 0.0833 and the postulated proportion of 0.05.

Figure 12-5

displays the test statistic in relation to the rejection region.

Observe that the test statistic falls in the do not reject region.