Answer:
Most medical malpractice lawsuits are dropped or dismissed.
Step-by-step explanation:
Null hypothesis: The proportion of medical malpractice lawsuits that are dropped or dismissed is 0.61
Alternate hypothesis: The proportion of medical malpractice lawsuits that are dropped or dismissed is greater than 0.61
The test is a one-tailed test because the alternate hypothesis is expressed using greater than
Test statistic (z) = p ÷ sqrt[p(1-p) ÷ n]
p is sample proportion = 488/802 = 0.61
n is the number of medical malpractice lawsuits selected = 802
z = 0.61 ÷ sqrt[0.61(1-0.61) ÷ 802] = 0.61 ÷ 0.017 = 35.88
The critical value for a one-tailed test using 0.05 significance level is 1.645
Conclusion:
Reject the null hypothesis because the test statistic 35.88 is outside the region bounded by the critical value 1.645.
The claim is contained in the alternate hypothesis, so there is sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed.
