Module 18 – Introduction to Hypothesis Testing (13 of 22 discussion 1)

At the end, you will need to replay to at least two students.

Prompt

The Pew Research Center reported in 2018 that 68% of U.S. adults rated “reducing health care costs” as a national priority. This year a survey is conducted with a national sample of 1,505 U.S. adults selected by a combination of landline and cell phone random digit dials. This year’s survey finds that 70% of the sample says that “reducing health care costs” is a national priority.

We test the following hypotheses:

H0: The proportion of U.S. adults this year who rate “reducing health care costs” as a national priority is still 0.68.

Ha: The proportion of U.S. adults this year who rate “reducing health care costs” as a national priority is greater than 0.68.

The P-value is 0.045. At a 5% significance level, we would reject the null hypothesis and concluded that the proportion of U.S. adults this year who rate “reducing health care costs” as a national priority is greater than 0.68.

Explain the P-value in the context of this issue.