Suppose a random sample of 100 observations from a binomial population gives a value of pn = .63 and you wish to test the null hypothesis that the population parameter p is equal to .70 against the alternative hypothesis that p is less than .70.

a. Noting that pn = .63, what does your intuition tell you? Does the value of pn appear to contradict the null hypothesis?

b. Use the large-sample z-test to test H0: p = .70 against the alternative hypothesis, Ha: p 6 .70. Use a = .05. How do the test results compare with your intuitive decision from part a?

c. Find and interpret the observed significance level of the test you conducted in part b.