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The Australian Government is interested in the proportion of people who are either Satisfied or Very Satisfied with current Government Climate Change policies. They believe

The Australian Government is interested in the proportion of people who are either Satisfied or Very Satisfied with current Government Climate Change policies. They believe that they have the support of the majority of people i.e. greater than half of people.

You are to conduct a hypothesis test to test their Claim. The random sample of 200 people shows that 110 residents were either Satisfied or Very Satisfied with the current Government policies.

  1. Write down the null and alternative hypotheses in both symbols and wordsfor the above situation.

H0:

(Symbols)

H0:

(Words)

H1:

(Symbols)

H1:

(Words)

  1. Using a level of significance () of 1%:
    1. State the critical value(s)
    2. What is your decision rule?
  2. Calculate the value of the test statistic. Show your calculations.
  3. State your decision then, in plain language, your conclusion. Explain your reasoning.
  4. Based on your answer to part (d), would the p-value be less than 1%? Explain why/why not. (No calculations required)
  5. With hypothesis testing, there is always the risk that you will reach an incorrect conclusion. Based on your answer to part (d), what type of error (Type I or Type 2 error) could be made here? Explain what this means in the context of the Australian Government's claim. (No calculations required)

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