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A sample of 97 observations indicated that X1 is 87. A second sample of 153 observations indicated that X2 is 117. Conduct a z-test of hypothesis using a 0.02 significance level.

Ho: p1 ≤ P2
H1: p1 > P2

a) State the decision rule.

  • Reject Ho in favour of H1 if the computed value of the statistic is less than 2.05.
  • Reject Ho in favour of H.1 if the computed value of the statistic is between -2.05 and 2.05.
  • Reject Ho in favour of H1 if the computed value of the statistic is greater than 2.33.
  • Reject Ho in favour of H1 if the computed value of the statistic is between -2.33 and 2.33.
  • Reject Ho in favour of H1 if the computed value of the statistic is greater than 2.05.
  • None of the above.

b) Compute the pooled proportion. For full marks your answer should be accurate to at least two decimal places.

Pooled proportion: 0

c) What is the value of the test statistic?

For full marks your answer should be accurate to at least two decimal places.

Test statistic: 0

d) What is your decision regarding Ho?

  • There is sufficient evidence, at the given significance level, to reject Ho and accept
  • There is insufficient evidence, at the given significance level, to reject Ho and so Ho will be accepted or at least not be rejected.
  • There is insufficient evidence to make it clear as to whether we should reject or not reject the null hypothesis.

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