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    Identify the null hypothesis and testing significance

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    Test the given claim. Identify the null hypothesis, alternative hypothesis, and test statistic, P-value or critical value(s). Provide a conclusion about the null hypothesis, and a final conclusion that addresses the original claim. Use the P-value method unless your instructor specifies otherwise.

    Travel Through the Internet. Among 734 randomly selected internet users, it was found that 360 of them use the Internet for making travel plans (based on data from a Gallop poll). Use a 0.01 significance level to test the claim that among Internet users, less than 50% use it for making travel plans. Are the results important for travel agents?

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    Solution Preview

    The null hypothesis, alternative hypothesis:
    Ho: p ≥ 0.5
    Ha : p < 0.5

    We use one-tailed t-test for the sample mean.
    The sample mean is m = x/n = 360/734 = ...

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    This solution provides calculations for hypothesis testing.

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