Answer
a. $σ_p̂$=$\sqrt \frac{0.45*0.55}{1000}$=0.0157
z= $\frac{0.45-0.50}{0.0157}$ =-3.18
α =0.05, critical value = -1.645
Rejection region = z< -1.645
Non rejection region = < z >1.645
The value z = -3.18 falls at the rejection region, hence we reject the null hypothesis and conclude that the percentage of people who have a will is less than 50%.
b. Type I error in part a is α. The probability of making Type I error is 5%.
c. If the probability of making a Type I error were zero, we failed to reject the null hypothesis , because p-value is always greater than 0 or α.
d. If α = 0.05,
p-value = P(Z
Work Step by Step
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