A recent study conducted by the government attempts to determine proportion of p

Question

A recent study conducted by the government attempts to determine proportion of people who support further increase in cigarette taxes. In this study, 2500 voting age citizens were sampled, and it was found that 1900 of them were in favor of an increase in cigarette taxes. Based on the provided data, do you believe that 78% of all citizens are in favor of increasing the tax on cigarette. (A) [6] State the null and alternative hypotheses and compute the p-value. (B) [3] What is the smallest you need to reject the null hypothesis.

Explanation / Answer

Ho : p=0.78

H1 : p > 0.78

po = 1900 / 2500 = 0.76

Z = 0.76 - 0.78 / srqt [ ( 0.78*0.22 / 2500 ) ]

Z = -2.41

p value : 0.00798

smallest alpha to reject the null hypothesis is 0.008

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