8.

6 Hypothesis Tests for population proportion

Example 9:

A construction company suspects that the proportion of jobs they

complete behind schedule is 0.20 (20%). Of their 80 most recent jobs 22
were completed behind schedule. Test at the 5% level of significance
whether this information confirms their suspicion.

Step 1: 𝑯 𝟎 : 𝒑=𝟎 . 𝟐 𝒑𝟎
𝑯 𝟏: 𝒑 ≠ 𝟎 . 𝟐 𝒏=𝟖𝟎
Step 2: no. of successes in the 𝒙 = 𝟐𝟐
sample

^ 𝟐𝟐
∴ 𝒑= =𝟎 .𝟐𝟕𝟓
𝟖𝟎
Step 3: TS ^ − 𝒑𝟎
𝒑
𝒁 𝟎= 𝟎 .𝟐𝟕𝟓 −𝟎 . 𝟐
¿ ¿ 𝟏 . 𝟔𝟕𝟕
√ 𝒑𝟎 𝒒𝟎
𝒏 √𝟎 .𝟐( 𝟎 .𝟖)
𝟖𝟎
Step 4: RR
𝜶
𝜶 =𝟎 . 𝟎𝟓
=𝟎 . 𝟎𝟓 𝟐
𝟐

TS does not lie in the RR.

Step 5: Conclusion 𝟏 . 𝟔𝟕𝟕

Since , do NOT reject at a 5% level of significance.

There is insufficient evidence to conclude that the proportion of jobs

they complete behind schedule is NOT 0.20 (i.e. cannot conclude )