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P-Value Method on Purchasing Textbooks

Suppose a study is conducted to test the claim, at a 0.01 significance level, that less than 75% of college students spend less than $250 per semester on text books. A survey of 700 students found that 71% spent less than $250 per semester on texts

List the claim using the P-value method

Determine the p-value (round to four decimal places as needed)

Choose correct answer
a. The study does provide sufficient evidence to support the claim that less than 75% of college students spend less than $250 per semester on books

b. The study does not provide sufficient evidence to support the claim that less than 75% of college students spend less than $250 on textbooks

Solution Preview

Suppose a study is conducted to test the claim, at a 0.01 significance level, that less than 75% of college students spend less than $250 per semester on text books. A survey of 700 students found that 71% spent less than $250 per semester on texts

List the claim using the P-value method

Null hypothesis H0: ...

Solution Summary

This solution presents the null and alternative hypothesis and calculates the z-test statistic to compare with the p-value. A decision is made to accept or reject the null hypothesis and an answer is identified.

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