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In a study of 1228 randomly selected medical malpractice​ lawsuits, it was found that 856 of them were dropped or dismissed. Use a 0.01 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

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usamasama

Answer:

Hypothesis

H o : No difference between proportions

H 1 : There is a significant difference between proportions

n = 1228

b = 1228 - 856

b = 375

Since n ≥ 25

b = {( a + 0.5 ) - n/2 }\  ( √n )/2

   = {( 372 + 0.5 ) - 1228/2 }\ ( √1228 )/2

   = - 13.789

  • from table : A-2
  • p-value is 0.000
  • given significance level is α = 0.01
  • p-value is less than significance level hence there is enough evidence to reject null hypothesis
  • Which means there is a significance difference between the proportion of lawsuits that go to trail which should be dismissed

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