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 0.62. 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 () may be different to 0.62. He conducts a hypothesis test to find out.
The null and alternative hypotheses are:
H0:= 0.62
HA: 0.62
Geoff takes a random sample of 101 customers and notes whether or not they leave a tip. In this sample, the proportion of people that leave a tip is 0.67. You may find thisstandard normal tableuseful throughout this question.
a)Calculate the test statistic (z). Give your answer to 2 decimal places.
z =
b)Calculate the P-value. Give your answer as a decimal to 4 decimal places.
P =
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