Explore BrainMass

Hypothesis Testing of Proportions

Please solve the exercise below and show your work.

A recent study conducted by the state government attempts to determine whether the voting public supports further increase in cigarette taxes. The opinion poll recently sampled 1500 voting age citizens. 1020 of the sampled citizens were in favour of an increase in cigarette taxes.

The state government would like to decide if there is enough evidence to establish whether the proportion of citizens supporting an increase in cigarette taxes is significantly greater than .66 at 5% and 10% significance levels. Indicate which test you are performing; show the hypotheses, the test statistic and the critical values and mention whether one-tailed or two-tailed.

Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.