Suppose a poll is taken that shows that 795795 out of 15001500 randomly selected, independent people believe the rich should pay more taxes than they do. Test the hypothesis that a majority (more than 50%) believe the rich should pay more taxes than they do. Use a significance level of 0.05.
Accepted Solution
A:
Answer:Yes. more than 50% is true.Step-by-step explanation:Given that a poll is taken that shows that 795 out of 1500 randomly selected, independent people believe the rich should pay more taxes than they do.Sample proportion p = [tex]\frac{795}{1500} =0.53[/tex]Sample size n = 1500Hypotheses would be[tex]H_0: p = 0.50\\H_a: p >0.50[/tex](Right tailed test at 5% significance level)Std error of proportion =[tex]\sqrt{\frac{P(1-P)}{n} } =\sqrt{\frac{0.5(1-0.5)}{1500} } \\=0.0129[/tex]Proportion difference = p-P = [tex]0.53-0.5=0.03[/tex]Test statistic= p diff/std error = [tex]\frac{0.03}{0.0129} \\=2.33[/tex]p value <0.05Hence reject null hypothesisThere is significant difference in the two proportions and hence a majority (more than 50%) believe the rich should pay more taxes than they do is supported by statistical evidence.