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    Test statistic and critical values

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    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 favor 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.

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    Solution Preview

    See attached file.

    This is a one tailed test, since we are looking to see if it is greater than .66. We will use the one proportion ...