Question: Suppose the sample in Exercise 8.76 has produced pn = .74 and we wish to test H0: p = .8 against the alternative Ha: p

Suppose the sample in Exercise 8.76 has produced pn = .74 and we wish to test H0: p = .8 against the alternative Ha: p 6 .8.

a. Calculate the value of the z statistic for this test.

b. Note that the numerator of the z statistic 1pn - p0 = .74 - .80 = -.062 is the same as for Exercise 8.76.
Considering this, why is the absolute value of z for this exercise larger than that calculated in Exercise 8.76?

c. Complete the test, using a = .05, and interpret the result.

d. Find the observed significance level for the test and interpret its value.

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