Reference no: EM1316381

Interpretation for the given statement using P-value.

Provide an appropriate response.

A state survey investigates whether the proportion of 8% for employees who commute by car to work is higher than it was five years ago. A test on employee commuting by car was done on a random sample size of 1000 and found 120 commuters by car. Test an appropriate hypothesis using = 0.01 and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.

1. z = -4.66; P-value > 0.99999. There is a 99.9% chance of having 120 or less of 1000 people in a random sample be commute by car if in fact 8% do.

2. z = -4.66; P-value > 0.00001. The change is statistically significant. A 98% confidence interval is (9.6%, 14.4%). This is clearly lower than 8%. The chance of observing 120 or more commuters by car of 1000 is greater than 0.001% if the commuting by car is really 8%.

3. z = 4.66; P-value < 0.99999. There a 99.9% chance of having 120 of less of 1000 people in a random sample is commute by car if in fact 8% do.

4. z = 4.66; P-value < 0.00001. The chance is statistically significant. A 98% confidence interval is (9.6%, 14.4%). This is clearly higher than 8%. The chance of observing 120 or more commuters by car of 1000 is less 0.001% if the commuting by car is really 8%. The P-value is less than the alpha level of 0.01.