A medical researcher wishes to determine if the way people pay for their medical prescriptions is distributed as follows: 60% personal funds, 25% insurance, 15% Medicare. A sample of 50 people found that 32 paid with their own money, 10 paid using insurance, and 8 paid using Medicare. At α = 0.05 is the assumption correct? Use the P value method. What would be an implication of the results?
Perform these steps.
a. State the hypotheses and identify the claim.
b. Find the critical value.
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.