b) The test statistic value is:   c) Using the Traditional method, the critical value is:

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b) The test statistic value is:  

c) Using the Traditional method, the critical value is:

Given p = 0.3714 and N= 35 for the high income group.
Test the claim that the proportion of children in the high income group that drew the nickel too large is smaller than 50%. Test at the 0.05 significance level.
Transcribed Image Text:Given p = 0.3714 and N= 35 for the high income group. Test the claim that the proportion of children in the high income group that drew the nickel too large is smaller than 50%. Test at the 0.05 significance level.
Expert Solution
Step 1

In this scenario, It is appropriate to use one proportion Z test.

Hypotheses:

Let p be the proportion of children in the high income group that drew the nickel too large. The aim is to check that the proportion of children in the high income group that drew the nickel too large is smaller than 50%.

The null hypothesis is H0 : p=0.5

The alternative hypothesis Ha : p <0.5.

The type of test statistic is one proportion Z test.

Calculation steps:

b)

Test statistic:

Here, n =35 and p^ =0.3715. The hypothetical proportion, p0 is 0.5.  The test statistic for hypothesis test for proportion is given by:

zcalc=p^-pp01-p0n=0.3715-0.50.51-0.535=-0.12850.08452=-1.52

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