Suppose a random sample of 100 observations from a binomial population gives a value of pn = .69 and you wish to test the null hypothesis that the population parameter p is equal to .75 against the alternative hypothesis that p is less than .75.

a. Noting that pn = .69, what does your intuition tell you? Does the value of pn appear to contradict the null hypothesis?

b. Use the large-sample z-test to test H0: p = .75 against the alternative hypothesis Ha: p 6 .75. Use a = .05.

How do the test results compare with your intuitive decision from part a?

c. Find and interpret the observed significance level of the test you conducted in part b.