Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is p = 0.55 and the alternate is p $\neq$ 0.55. A random sample of 400 families who planned to buy a vacation residence revealed that 228 families want a condominium. What decision should be made regarding the null hypothesis?
A) Do not reject it
B) Reject it
C) Cannot accept nor reject it based on the information given

Question

Quizplus · Accepted Answer

The sample proportion is 228/400 = 0.57. The standard deviation of the sample proportion is sqrt(0.55*0.45/400) = 0.023. The z-score is (0.57 - 0.55) / 0.023 = 0.87. The p-value is P(Z > 0.87) = 0.191. Since the p-value is greater than 0.01, we do not reject the null hypothesis.

Test at the 0 ≠\neq= 055 a Random Sample of 400 Families Who Planned to Those

Test at the 0 $\neq$ 055 a Random Sample of 400 Families Who Planned to Those