GCCCD Hypothesis Testing P Value Interpretation Health Care Costs Discussion

Learn by Doing

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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:

H0H0: The proportion of U.S. adults this year who rate “reducing health care costs” as a national priority is still 0.68.

HaHa: 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.