Answer:
Null hypothesis: H0 = 0.32
Alternative hypothesis: Ha > 0.32
z = 2.65
P value = P(Z>2.65) = 0.004
Decision: We REJECT the null hypothesis and accept the alternative hypothesis.
Rule
If;
P-value > significance level --- accept Null hypothesis
P-value < significance level --- reject Null hypothesis
Z score > Z(at 95% confidence interval) ---- reject Null hypothesis
Z score < Z(at 95% confidence interval) ------ accept Null hypothesis
Explanation:
Given;
n=1700 represent the random sample taken
Null hypothesis: H0 = 0.32
Alternative hypothesis: Ha > 0.32
Test statistic z score can be calculated with the formula below;
z = (p^−po)/√{po(1−po)/n}
Where,
z= Test statistics
n = Sample size = 1700
po = Null hypothesized value = 0.32
p^ = Observed proportion = 0.35
Substituting the values we have
z = (0.35-0.32)/√{0.32(1-0.32)/1700}
z = 2.652
z = 2.65
To determine the p value (test statistic) at 0.05 significance level, using a one tailed hypothesis.
P value = P(Z>2.65) = 0.004
Since z at 0.05 significance level is between -1.96 and +1.96 and the z score for the test (z = 2.65) which doesn't falls with the region bounded by Z at 0.05 significance level. And also the one-tailed hypothesis P-value is 0.004 which is lower than 0.05. Then we can conclude that we have enough evidence to reject the null hypothesis, and we can say that at 5% significance level the null hypothesis is invalid, therefore we accept the alternative hypothesis.