QMB-210 Lecture 23: QMB 210 Lecture 23: Chapter 9: Null & alternative hypothesis/ Z-test statistics/ P-value/ Upper & lower tails/ Examples

• School: University of Tampa
• Department: Quantitative Methods in Business
• Course: QMB-210
• Professor: Shaista Nisar

Document Summary

Example: the proportion of cell phone users with 4g contracts last year was p = 0. 62. Verizon executive thinks the proportion has increased this year. Suppose that from a random sample of 350 users, 238 have 4g contracts. This is a one tail test because he thinks it has increased so wants to test this. It is an upper tail test because the alternative says it is greater than. Step 1: identify the null and alternative hypotheses: h0: p 0. 62 (status quo: the proportion is not greater than 0. 62, h1: p > 0. 62 (the proportion has increased from 0. 62) Step 2: set a value for the significance level, : = 0. 05 has been chosen. Find the sample proportion and the z-test statistic for a hypothesis test for the population proportion: o o. We can conclude at the 0. 05 level of significance that the proportion of people with 4g contracts has increased above 62%.