Math Problem Statement

The business college computing center wants to determine the proportion of business students who have personal computers (PCs) at home. If the proportion differs from 25%, then the lab will modify a proposed enlargement of its facilities. Suppose a hypothesis test is conducted and the test statistic is 2.4. Find the P-value for a two-tailed test of the hypothesis.

Solution

The question asks for the P-value given a test statistic of 2.4 for a two-tailed test of a hypothesis, where the proportion differs from 25%. Here's how we calculate the P-value:

  1. Determine the test statistic (Z): It's given as Z=2.4Z = 2.4.

  2. Find the P-value for a two-tailed test:

    The P-value in a two-tailed test corresponds to the probability that the test statistic falls in the extreme tails of the normal distribution (both sides). We need to look up the value for Z=2.4Z = 2.4 in a Z-table or use statistical software.

    The area to the right of Z=2.4Z = 2.4 (one-tailed) is approximately 0.0082. Since it's a two-tailed test, we multiply this by 2:

    P-value=2×0.0082=0.0164\text{P-value} = 2 \times 0.0082 = 0.0164

Thus, the correct answer is C. 0.0164.

Would you like further details or have any questions?

Here are five related questions you might find useful:

  1. What is the significance level (α) in hypothesis testing?
  2. How is a two-tailed test different from a one-tailed test?
  3. What does a P-value represent in hypothesis testing?
  4. How do you interpret a P-value in the context of statistical significance?
  5. What is the relationship between Z-scores and confidence intervals?

Tip: A lower P-value indicates stronger evidence against the null hypothesis, suggesting that the observed data is less likely to occur under the assumption that the null hypothesis is true.

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Math Problem Analysis

Mathematical Concepts

Hypothesis Testing
Z-Score
P-Value
Normal Distribution
Two-Tailed Test

Formulas

P-value = 2 * P(Z > |z|)
Z = (Observed Proportion - Expected Proportion) / Standard Error

Theorems

Central Limit Theorem
Standard Normal Distribution

Suitable Grade Level

College-level Statistics