Suppose a random sample of 100 observers from a binomial population gives a value of p* = .63 and you wish to test the null hypothesis that the population parameter p is equal to .70 against the alternative hypothesis that p is less than .70.
a) Noting that p* = .63, what does your intuition tell you? Does the value of p* appear to contradict the null hypothesis?
b) Use the large sample z-test to test Ho: p = .70 against the alternative hypothesis, Ha: p < .70. Use ? = .05. How do the test results compare to your intuitive decision from part a?
c) Find and interpret the observed significance level of the test you conducted in part b.
*** p* is supposed to be a p with a "pointed arch" over it. I'm not sure how to describe it but it is like a triangle with no base pointing up over the p in the problem in the book. Ho and Ha are italicized and the o and a is subset (the o and a are actually dropped below the H to the right).
A complete, neat and step-by-step solution is provided that tests the random sample of 100 observers from a binomial population.