Question

In a study of 1228 randomly selected medical malpractice​ lawsuits, it was found that 856 of them were dropped or dismissed. Use a 0.01 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

Answer 1

Hypothesis

H o : No difference between proportions

H 1 : There is a significant difference between proportions

n = 1228

b = 1228 - 856

b = 375

Since n ≥ 25

b = {( a + 0.5 ) - n/2 }\ ( √n )/2

= {( 372 + 0.5 ) - 1228/2 }\ ( √1228 )/2

= - 13.789

• from table : A-2

• p-value is 0.000

• given significance level is α = 0.01
• p-value is less than significance level hence there is enough evidence to reject null hypothesis
• Which means there is a significance difference between the proportion of lawsuits that go to trail which should be dismissed