Answer:
We conclude that the percentage of residents attending college in that age-group is greater than 23.8%.
Explanation:
We are given that in 1990, 23.8% of 18-24 year-old in Biddeford, Maine were attending college. About 10 years later, a random sample of 610 18-24 year-old showed 178 were attending college.
Let p = % of 18-24 year-old in Biddeford, Maine who were attending college = 23.8%
Let Null Hypothesis,
: p
0.238 {means that the percentage of residents attending college in that age-group is less than or equal to 23.8%}
Alternate Hypothesis,
: p > 0.238 {means that the percentage of residents attending college in that age-group is greater than 23.8%}
The test statistics will be used here is One-sample proportion test;
T.S. =
~ N(0,1)
where,
= % of 18-24 year-old in Biddeford, Maine who were attending college in a sample of 610 people =
= 0.292
n = sample size = 610
So, test statistics =
= 2.933
Now, at 1% significance level the z table gives critical value of 2.5758. Since our test statistics is more than the critical value so we have sufficient evidence to reject null hypothesis as it will fall in the rejection region.
Therefore, we conclude that the percentage of residents attending college in that age-group is greater than 23.8%.