Question

In a study of 806 randomly selected medical malpracticeâ lawsuits, it was found that 513 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. What is the hypothesis test to beâ conducted?

Answer 1

`$H_0: p = 0.5$`

`$H_a: p > 0.5$`

Alpha, α = 0.01

The sample proportion is :

`$p'=(x)/(n)$`

`$=(513)/(806)$`

= 0.636

Test statistics,
`$z=\frac{p'-p}{\sqrt{(pq)/(n)}}$`

`$z=\frac{0.636-0.5}{\sqrt{(0.5* 0.5)/(806)}}$`

`$z=(0.136)/(0.0176)$`

z = 7.727

The p value = 0.00001

Here we observe that p value is less than α, and so we reject the hypothesis
`H_0`.

Therefore, there is sufficient evidence,