HYPOTHESIS:

1. Previous evidence show that majority of the students are happy and contented with the
university’s policies. This year, a random sample of 100 students was drawn. They were
asked if they were happy and contented with the university’s policies. Out of 100 students,
65 said so. What conclusions could be made at 10% level of significance?

𝐻𝑜 = 𝑃 ≤ 0.50 ; At most, half of the student population are happy and contented with the
university’s policies.

𝐻𝑎 = 𝑃 > 0.50 ; Majority of the student population are happy and contented with the
university’s policies.
65
𝜌̂ = = 0.65
100
Decision Rule: Reject the null hypothesis 𝐻𝑜 if 𝑍𝑐 > 𝑍0.10 = 1.28. Otherwise, we fail to reject 𝐻𝑜 .

The blue area under the probability distribution is the rejection region. It is found at the right
tail of the normal distribution table as shown above.

𝜌̂ − 𝑃𝑜 0.65 − 0.50
𝑍𝑐 = = = 3.0
√𝑃𝑜 (1 − 𝑃𝑜 ) √0.5(1 − 0.5)
𝑛 100
Decision: 3.0 > 1.28, therefore, we reject the null hypothesis.

Conclusion: Majority of the student population are happy and contented the university’s
policies.

2. An independent research group is interested to show that the percentage of babies

delivered through Caesarian Section is decreasing. For the past years, 20% of the babies
were delivered through Caesarian Section. The research group randomly inspects the
medical records of 144 births and finds that 25 of the births were by Caesarian Section. Can
the research group conclude that the percent of births by Caesarian Section has decreased
at 5% level of significance?
 𝐻𝑜 = 𝑃 ≥ 0.20 ; The proportion of births that were delivered by Caesarian Section is not
decreasing.

𝐻𝑎 = 𝑃 < 0.20 ; The proportion of births that were delivered by Caesarian Section is
decreasing.
25
𝜌̂ = = 0.17
144
Decision Rule: Reject the null hypothesis 𝐻𝑜 if 𝑍𝑐 < 𝑍−0.05 = −1.645. Otherwise, we fail to reject
𝐻𝑜 .

The blue area under the probability distribution is the rejection region. It is found at the left tail
of the normal distribution table as shown above.
𝜌̂ − 𝑃𝑜 0.17 − 0.50
𝑍𝑐 = = = −0.9
√𝑃𝑜 (1 − 𝑃𝑜 ) √0.5(1 − 0.5)
𝑛 100
Decision: −0.9 > −1.645, therefore, we fail to reject the null hypothesis.

Conclusion: The proportion of births that were delivered by Caesarian Section is not decreasing.