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Testing of Hypothesis

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Suppose a private university claims that more than 2/3 of their students graduate within four years. A random survey of 300 alumni finds that 190 of them graduated within 4 years.

Given that the pair of hypotheses that correspond to the claim are:

H0: p < 8804; 0.67
H1: p > 0.67

Find the critical value for the hypothesis test. Assume that the significance level is a = 0.01.

Remember that this is a right-tailed test, so your critical value will be positive. Remember also that in one-tailed tests, you don't have to cut your a-value in half.

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The solution shows how to find the critical value for a hypothesis test.

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