Use the five-step hypothesis testing procedure outlined below to determine if there is evidence that the proportion of all employees who own their home is different from 0.5. Use Minitab Express. If assumptions are met, use the normal approximation method. Other than checking assumptions, you do not need to do any calculations by hand. Remember to include all relevant Minitab Express output and to clearly identify your final answer for each step. [25 points; 5 points per step] Step 1: Check assumptions and write hypotheses.
The data is coming from a random sample.
NP (= 60*0.75 = 45) and n(1-p) (=60*0.25 = 15) is greater than 10. Hence, distribution is approximately Normal.
Our Null Hypothesis: Proportion of all employees who own their home is 0.75. p=0.75
Our Alt. Hypothesis: Proportion of all employees who own their home is different from 0.75. p0.75
SP: () = 40/60 = 0.667
Step 2: Calculate the test statistic.
Test statistics: Z= = = -1.491
Step 3: Determine the p value.
P-Value of Z-statistics for two-tailed is 0.
(1.491, TRUE)
Step 4: Decide to reject or fail to reject the null.
The P-Value is greater than 0.05 level of significance, we fail to reject the null hypothesis.
Step 5: State a "real world" conclusion.
We can understand that the proportion of all employees who own their home is 0.75. P=0.75