Suppose a random sample of 100 observations from a

Solution :

Step 1 of 3:

Given a random sample of 100 observations from a binomial population gives a value of .

So n=100.

Then the null hypothesis that the population parameter p=0.70 and

The alternative hypothesis that p < 0.70.

Our goal is :

a). We need to find what does your intuition tell you and does the value of  appear to contradict the null hypothesis.

b). We need to find how do the test results compare with your intuitive decision from part a.

c). We need to find and interpret the observed significance level of the test you conclude in part (b).

a). Given .

From the given information we know that the value of is very smaller than the hypothesized value of p = 0.70.

Hence the hypothesis it is not correct.