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# Hypotheses Based on P-Value and Level of Significance

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3. A survey taken showed that among 785 randomly selected subjects who completed 4 years of college, 144 smoke and 641 do not smoke (based on data from the American Medical Association). Use the 0.01 level of significance to test the claim that the rate (proportion) of smoking among those with four years of college is less than 27 out of 100 rate of the general public. Why do you think that the rate of college graduates who smoke would be less than the rate of the general public?

1. State the Null Hypothesis and the Alternative Hypothesis
2. Determine the test statistic.
3. Determine the P-value
4. Make a decision regarding the hypotheses based on the P-value and the Level of Significance.

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#### Solution Preview

1. State the Null Hypothesis and the Alternative Hypothesis

The null hypothesis tested is

H0: The proportion of smoking among those with four years of college ≥ 0.27. (p ≥ 0.27)

The alternative hypothesis is

H1: The proportion of smoking among those with four years of college < 0.27. (p < 0.27)

2. Determine the test statistic.

The test statistic ...

#### Solution Summary

Hypotheses based on p-value and level of significance is discussed in the solution.

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