ANOTHER EXAMPLE ON POPULATION

PROPORTION

The Disaster Risk Reduction and Management office

claims that only 20% of the establishments around the city
have a proper procedure for an earthquake drill. To test this
claim, the supervisor visited 40 establishments, and 14 of
them have a proper procedure in conducting an
earthquake drill. Test the claim at 0.05 level of significance.

1. Formulate the null and alternative hypotheses.

𝐻𝑜: The proportion of establishments with a proper procedure of an earthquake drill is 20%.

𝐻𝑜: 𝑝 = 0.20

𝐻𝑎: The proportion of establishments with a proper procedure of an earthquake drill is not
20%.

𝐻𝑎: 𝑝 ≠ 0.2

2. Determine whether the sampling distribution is approximately normal.

It is given that 𝑛 = 40 and 𝑝 = 0.20. Solve for 𝑞.
𝑞=1−𝑝
= 1 − 0.20
= 0.80
Verify if 𝑛𝑝 ≥ 5 and 𝑛𝑞 ≥ 5 holds.
𝑛𝑝 = (40)(0.20) = 8
𝑛𝑝 = (40)(0.80) = 32
Since 8 ≥ 5 and 32 ≥ 5, it follows that both 𝑛𝑝 ≥ 5 and 𝑛𝑞 ≥ 5 holds. Thus, the sampling
distribution is approximately normal.

3. Determine the rejection region. Since the alternative hypothesis uses the relation symbol ≠, a
two-tailed test should be used. The significance level is 𝛼 = 0.05, so the critical values are
±1.96. The rejection region is illustrated as follows.

4. Compute for the test statistic value.

We have 𝑝̂= 14/40 = 0.35, 𝑝 = 0.20, 𝑞 = 0.80, and 𝑛 = 40. Substitute these values into the
formula.
 Thus, the test statistic value is 𝑧 = 2.37.

5. Form a decision on whether to reject 𝐻𝑜 or not.

As illustrated below, the test statistic value 𝑧 = 2.37 lies in the rejection region of the
distribution.

Thus, we reject the null

hypothesis.
6. Make a conclusion on the hypothesis.

There is enough evidence to say that the proportion of establishments with a proper procedure
of an earthquake drill is not 20%.

PERFORMANCE TASK

Answer the following problems using the steps in hypothesis testing. (25 points each)

1. An administrator claims that 75% of their students have traveled abroad. To test
this claim, the administrator interviewed a random sample of 60 students. Out of
the 60 students, 39 of them said that they had traveled abroad. Test the claim
using a 0.01 level of significance. Show the steps in hypothesis testing.

2. Previous data suggest that at most 15% of the appliances produced by Company
X are defective. However, the quality control officer thinks that there are more
defective units lately. This claim is tested using a random sample of 46 appliances
from Company X. It was found out that 12 of these are defective. Test the claim
of the competitor at 0.05 level of significance.