Question
Geoff has been running a restaurant in the city for many years. He knows from experience that the proportion of customers that leave tips at
Geoff has been running a restaurant in the city for many years. He knows from experience that the proportion of customers that leave tips at this restaurant is 0.55. Geoff has recently opened a restaurant in a suburban area. It seems that tipping habits are different in the suburbs: Geoff believes that the proportion of customers that tip at his new restaurant (p) may be different to 0.55. He conducts a hypothesis test to find out.
The null and alternative hypotheses are:
H 0 : p = 0.55
H a : p 0.55
Geoff takes a random sample of 110 customers and notes whether or not they leave a tip. In this sample, the proportion of people that leave a tip is 0.60.
a)Calculate the test statistic (z). Give your answer to 2 decimal places.
z =
b)Calculate theP-value. Give your answer as a decimal to 4 decimal places.
P-value =
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