Discussion:
Q: Suppose a random sample of 100 observers from a binomial population gives a value of p* = .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 p* = .63, what does your intuition tell you? Does the value of p* appear to contradict the null hypothesis?
b) Use the large sample z-test to test Ho: p = .70 against the alternative hypothesis, Ha: p < .70. Use α = .05. How do the test results compare to your intuitive decision from part a?
c) Find and interpret the observed significance level of the test you conducted in part b.