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Unformatted text preview: large enough to indicate that the sampling distribution of p ^ is approximately normal? Does the interval contain either 0 or 1? Since p o = .4, Neither 0 nor 1 is in this interval. Hence, the sampling distribution of p ^ is approximately normal. Test Statistic: = .10 RR: z < 1.28 Calculation: x = 133 and n = 337 Decision: Do not reject H o . Conclusion: There is not sufficient evidence to indicate that less than 40% of the residents of Los Angeles County are protected by earthquake insurance. The pvalue of the test statistic is P(z < .20) = .5  .0793 = .4207. If the null hypothesis is true, there is a 42.07% chance of finding a value of z which is less than or equal to .20. Hence, there is not sufficient evidence to indicate that less than 40% of the residents of Los Angeles County are protected by earthquake insurance....
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 Fall '08
 STAFF
 Statistics, Binomial

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