The Australian Medical Association believed that the Health Minister’s recent statement, claiming that 80% of doctors supported the reforms to Medicare, was incorrect. The Association’s President suggested the best way to test this was to survey a random sample of 200 members about the issue. She indicated that the Association would be prepared to accept a Type I error probability of 0.02.
1. State the direction of the alternative hypothesis for the test. Type gt (greater than), ge (greater than or equal to), lt (less than), le (less than or equal to) or ne (not equal to) as appropriate in the box.
2. State, in absolute terms, the critical value as found in the tables in the textbook.
3. Determine the lower boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favour of the reforms. If there is no (theoretical) lower bound, type lt in the box.
4. Determine the upper boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favour of the reforms. If there is no (theoretical) upper bound, type gt in the box.
5. If 135 of the survey participants indicated support for the reforms, is the null hypothesis rejected for this test? Type yes or no.
6. Disregarding your answer for 5, if the null hypothesis was rejected, could the Association claim that the Health Minister’s assertion is incorrect at the 2% level of significance? Type yes or no.