A new medical company claims that 70% of the workers at ABSA are satisfied with their new medical scheme. A random sample of 150 workers showed that 100 are satisfied with their new medical scheme. Test the claim at a 10% significant level.what is the critical value

Answer 1

To test the claim, we can use the hypothesis test for a proportion.

The null hypothesis, denoted as H0, is that the claimed proportion of satisfied workers at ABSA is 70%:
H0: p = 0.70

The alternative hypothesis, denoted as Ha, is that the claimed proportion of satisfied workers at ABSA is not 70%:
Ha: p ≠ 0.70

The significance level, denoted as α, is 10% or 0.10.
Therefore, the critical value is the z-value that corresponds to a cumulative probability of (1-α/2) or (1-0.10/2 = 0.95).

To find the critical value, we can use a standard normal distribution table or a statistical software. The critical value at 0.95 cumulative probability is approximately 1.96.

Thus, the critical value is 1.96.